TeleCommunication Systems, Inc. (NASDAQ:TSYS)

igmud (47.10) Submitted: 4/18/2009 11:46:14 AM : Start Price: $8.85 TSYS Score: -139.77

High growth software and satellite company carrying the stigma of the telecom industry. With significant revenue from services to government and military and license fees from telecom this company is positioned well.

A leader in text messaging software and GPS capabilities for cell phones they are focusing on the high growth segments of the telecom industry. They have strategic advantage in their technology that is well supported by patent picket fences. Their patent protection has been proven in court.

With the EU moving to GPS location of cell calls to emergency (US 911) TSYS is positioned well. Their entry into China will generate incremental revenue from existing proven technologies. China’s growth in texting offers TSYS new revenues and future annuities from services and licenses.

Cash flow and income is growing allowing TSYS to increase R&D yet dilute that important expense as a percent of revenue. Their cash flow and cash position has allowed them to start a dividend, currently at 3% ($.07 a quarter on 4/16/09 price of $8.87).

The charts show a nice rising trend. I look for TSYS to rise to $15 in 2009 and continue upward.