VASCO Data Security International, Inc. (VDSI)

dani4800 (22.81) Submitted: 5/18/08 10:49 AM : Start Price: $10.17 VDSI Score: 44.96

I have been living in Asia since June 2003. I initially spent 2 years in Singapore, and I moved to Hong Kong in 2005. I have bank accounts with Citibank Singapore, OCBC and DB (local Singaporean banks). In Hong Kong, I use Citibank and ING (I used to have an account with HSBC). I also have a company account with Hang Seng bank. Every single one of this banks have implemented the use of Vasco digipass as an online security measure. While it is a pain to carry 6 digipasses, I see huge potential, mainly because of Citibank and HSBC, and their expansion in China and India. The digipass is easy to use (compared to RSA's token for example). Vasco has taken the lion share of the retail and commercial banking markets in Asia. Their solution is cheap, and it helps banks provide and maintain an air (impression) of security: that is something banks will not haggle on.
I think the recent price drop is due to the lack of understanding by the analyst, and the low follow-up by Wall street. I am usually not a great fan of tech and growth stocks, but VDSI is making money, its market is expanding and I can relate to their product (I have 6 of these bloody digipasses!!!). I think it is a great play: earnings in foreign currency act as a shield against falling dollar; and online banking security is something that is only beginning in the USA, which gives them room to grow there as well.
I bought some at 11.00 and I will buy again at 20 and at 30. I think this stock is one of the better opportunities I have seen in a while.

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