VASCO Data Security International, Inc. (VDSI)

tenmiles (99.99) Submitted: 2/21/08 9:24 AM : Start Price: $12.50 VDSI Score: 8.69

IT security provider Vasco has missed guidance for the last two quarters which is a big no-no in today’s investment climate. Current selloff, however, now places it firmly back in the “growth at the right price” camp. Strong balance sheet, high ROE grower – picked up over 600 new accounts in Q4 alone, including over 50 banks. Next year’s growth assumption still north of 25%. Recommend taking advantage of current small cap volatility to go long sub $13. Outsized gains expected on this one for those with 3 year time horizon – takeover bid not out of the range of possibilities, if share price remains depressed. Real world buyer at $12 if opportunity presents itself.

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