$13.91

0.11 (0.80%)

7/23/2008 3:59 PM

Fundtech Ltd. (FNDT)

CAPS Rating:

The Company is a provider of end-to-end financial transaction processing software solutions for financial institutions.

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What the Community Thinks

Total Members

258 Outperforms

4 Underperforms

All-Stars

79 Outperforms

0 Underperforms

Wall Street

5 Outperforms

0 Underperforms

Members bullish on FNDT are also bullish on:

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Ticker Tags

Application Software (70), Micro Cap (4824)
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Fundtech Ltd. At A Glance

Current Price:	$13.91
Last Trade Time:	7/23/2008 3:59 PM
Open:	$13.79
Previous Close:	$13.80
Daily Range:	$13.76 - $14.13
52-Week Range:	$9.68 - $17.83
Volume:	22,062
Market Cap:	$221.77M
P/E Ratio:	30.67
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Stock Trends

FNDT VS S&P 500 (SPY)

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Top Bull Pitch

Recs

1 Fundtech Ltd. (FNDT)

Avatar PSKTigger1 (66.28) Submitted: 2/18/08 5:10 PM

A quality small company. Israel has some of the best minds in finance and IT, exactly what this company needs to succeed. You can expect this company to take a hit anytime there is instability in the Mid-East, giving repeated good entry points.

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Recs 0 (FNDT) trurl9 (35.28) Submitted: 7/19/08 6:22 PM : Start Price: $14.74 FNDT Score: -7.03 Firm facilitates bank-to-bank transactions. More need for these services as global development continues. Concerned that FNDT is located in Israel and could be disrupted by regional war. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (FNDT) JMB21 (63.05) Submitted: 6/25/08 11:22 PM : Start Price: $14.47 FNDT Score: -1.61 MDP pick Fundtech looks good to me from both a fundamental and valuation perspective. From a fundamental perspective, the first metric I generally look at is ROIC, which I believe is an indicator of economic moats. FNDT's ROIC is not stellar, but is 11% higher than the industry average, a positive indicator. My thesis is that this industry-beating ROIC comes from an economic moat based on switching costs. Once a company decides to use FNDT's products, it is painful to switch to another company. In this sense, FNDT is a bit like your bank. You might be able to find a bank with the same services and lower fees/higher money market rates, etc., but is the difference really worth the costs and hassle of switching? Often it is not. It is this logic that I think provides FNDT with a somewhat durable economic moat. Beyond industry-beating ROIC, FNDT shows strong sales, earnings, and equity growth (all in the teens). Perhaps most importanlty, FNDT's Free Cash Flow has grown at an enviable rate of 34% over the last 5 years. All these metrics lead me to believe that this is a company with at least one factor giving it a lasting competitive advantage, and with leadership capable of exploiting that economic advantage to generate cash. From a valuation perspective, FNDT looks fairly cheap to me, but not as cheap as it looks to Bill Mann. One of the reasons that I find valuation to be more difficult than it appears is the wild variation between valuation models that are each developed by reasonable people. My valuation model indicates that the current share price accounts for about 16% annual earnings growth over the next decade, which falls between the analyst consensus of around 21% and the historical equity growth rate of 12.5%. To me, that says fairly valued to slightly undervalued. For a company as fundamentally strong as FNDT, I think it is sensible to abide by the old adage that it is better to buy a great company at a fair price than a lousy company at a cheap price. Risk factors: Two big economic risk factors are FNDT's limited customer base, and competition from bigger firms. There is also some speculative risk based on FNDT's p/e of 33, but that is significantly lower than the industry average so I think speculative risk is minimal. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (FNDT) pmp911 (37.00) Submitted: 6/24/08 2:26 PM : Start Price: $14.14 FNDT Score: -1.24 I like this company but I'm taking a short position waiting it to go back to the 12's before I go long. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (FNDT) TexasLonghorns (67.52) Submitted: 5/27/08 8:15 AM : Start Price: $12.30 FNDT Score: 20.05 Emerging growth in a much needed field. One of the best at what it does. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (FNDT) MJKpayday (94.81) Submitted: 5/18/08 9:38 AM : Start Price: $12.34 FNDT Score: 21.83 Fundtech is a little Israeli financial services company going after the big (and small) mega banks. Not to overtake the, but to seep into the crevices of their many financial processing inner workings plug the security risks. Almost sounds like a conspiracy in the making, but I think it's a couple of entrepreneurs who have found some major short falls in major banks and they've got the right technology for the job. With a PE of nearly 30 and a tangible price to book ratio of just under 3 it's hardly that deep value company I strive to own, but it's small size and amazing potential for growth has peaked my interest. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out.
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Top Pick	Member Name	Member Rating	Start Date	Call	Time Frame	Start Price	Stock Gain	S&P Gain	Score	Pitch
	TrackJMP	< 20	11/27/07		NS	$15.88	-12.41%	-9.55%	-2.86
	TrackDADavidson	78.59	08/16/07		NS	$15.32	-9.20%	-7.92%	-1.28
	TrackFerrisBaker	94.14	06/18/07		NS	$15.19	-8.43%	-16.41%	+7.98
	TrackRothCapital	64.40	11/03/06		NS	$10.99	+26.57%	-6.60%	+33.17
	TrackWedbush	< 20	10/13/06		NS	$10.54	+31.97%	-5.82%	+37.79

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