CyberSource Corp (CYBS)

P/E Ratio 74.4 - ouch! This company is expensive. With 35,000 new customers in last quarter, their net profit should start moving significantly upward. Positives: No debt and a growing stash of cash.

they make no moneyyyy!

their cash flows are practically none existant and they have no margins, this business is worth 12/share at most!

paypal, amazon, google, et al make a crapload more money than these folks do - something is wrong in this story and i'm banking it will come to show sooner or later!

These guys are THE name in online security systems. Watch them.

Has money to buy back its own stock. They have my vote of confidence.

As long as the internet continues to do business they will grow. It's true their P/E is out of whack but this should begin to drop as they mature.

The fundamentals are absolutely terrible. I seriously doubt CYBS will be able to retain or continue to charge the fees they charge to the heavy hitters in the market. Sure VRSN is out there, but that's not what is making this fall, its the fact that the googles, microsofts, ebays, and paypals of the world can put a lot of pressure on this little guy.

The P/E on this company is astronomical. It is also 91% institutionally owned. Their Asset base consists largely of goodwill and intangibles. I think this stock will not meet the hype and the institutions will drop it eventually for greener pastures.

Google uses it! So it's got a heavy hitter user right there. More and more purchases are being made on the internet, and we want secure methods of paying. As long as CYBS can keep showing that it's a safe method of paying, it will do well.

ibd

cabot

Stock is still underpriced. I was lucky enough to get in at 12.50 a share. Posting good profits & generating good cash flows. Shares are worth about 16.25.

CYBS is a fundamentally sound stock that just recently raised fourth quarter quidance and then delivered record revenues at the announcement (over a 60% increase year over year). This company is on a roll and in the face of the recession, nailed another quarter. It recently signed another contract with Borders INC, but this only adds to a company that has slowly but steadily grown from a $2 stock to a $13.5 stock in the last four years. CYBS specializes in electronic payment and risk management solutions and will continue to grow as the eCommerce world continues to grow---the end of this growth is no where in sight. Expect to see CYBS closing in on $20 by the end of the year.

I don't see this outperforming for long. It looks like they are struggling just to keep out of the red, but then again I may have no clue as to what I'm doing.

IBD #86

This is the company that recently bought the highly profitable Authorize.net and is continuing to consilidate what it can in the electronic payment processing industry. I see nothing but continued growth for this sector for the forseeable future. I'm talking about a minimum of 20% year over year growth for the next five years. I'm pulling that figure directly out of my ass, but I really do believe it. Most people forget about this aspect of online business unless they actually run one, but every single web site that does their own online credit card payments must pay someone like Authorize.net to process transactions for their web site. Authorize.net is still among a short list of payment processing companies that has excellent name recognition and critical mass among software developers so that they will remain a dominant name in payment processing unless their new ownership at CyberSource does something incredibly stupid and changes the name, or the service itself becomes unreliable. This kind of business is a cash cow...it's the kind of thing that, as a customer, you "set and forget" until a problem occurs, so if CyberSource handles its technical obligations well, its payment processing business should continue to be extremely profitable, especially the recently acquired Authorize.net business.

In the most recent quarter the new combination of CYBS and ANET processed a total of about $21BB in eCommerce. That's getting pretty close to 25% of the entire market. With that acquisition they position themselves as a go-to provider for both large and small companies. Their client lists are a virtual who's who of online retail. They will continue to make inroads both nationally and internationally as time moves forward. Looking forward to new guidance and analyst expectations.

Strong holiday period – Q4 is the strongest in e-commerce due to strong consumer spending during holidays.

Graduating to the mid cap category with acquistion of ANET - should contribute 80% of company combined profits.

Attractive recurring revenue model.

Organizations will only begin to process orders for goods and services over the internet more more and more as time passes, but since this is a rather new small company they will soon level off with the s&p 500, but in the further future they will grow and become very big.

New President Cruickshank. Incredible payments background of quick success tied to a long term future. Grew biz significantly at last post (CMO Chase-Paymentech).