On Track Innovations Ltd.(USA) (NASDAQ:OTIV)
The Company designs, develops and sells contactless microprocessor-based smart card products. Its three complete system product lines include Payments Solutions, Petroleum Systems and Smart ID Solutions.
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Recs
OTIV competes with NXPI and very well could get bought by them or another competitor. It has recently won contracts for nfc and parking pass in America..........the future is now.
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another mobile payments/NFC pick
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Sector pick, tech/storage stocks on the move.
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-In a segment I believe to see substantial growth over the next 5-10 years.
-Mastercard uses its products for Paypass
-Contactless payment is a way I pay for many items at gas stations and I belive we will see them at more places
-Easy to use and quick
Recs
This stock is in the tecdhnology sector of the market and in the industry of semicondustors. It's revenues increased 7% and net loss totaled $20.6M which reflects an increase in sales of petroleum products and payments products.
Recs
From all accounts, the paypass technology for Mastercard and OTI's other payment technologies work well and save the banks much money. Credit card companies do not move that quickly but they are in the process of incorporating paypass much more widely. When those orders finally start to roll in, OTI sales will jump.
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Contacless systems have great potential. On Track's technology is already used in Master Card pay pass, and is compatible with other major credit cards. Also, the founders are still have a strong involvement with the company.
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This is a speculative growth play. Micro Cap. Thinly traded. Insiders over 50% (I think). Stll in “loss” mode, but getting closer. Quarterly Revenue Growth YOY 42%. Few analysts cover (no top tier). Analysts project 35% growth, but no details to hand ones hat on. Institutional ownership is very low. Excellent financial health. Little debt , $48million cash. $2/share cash (compared to $7.5 share price 4/12/07). Trading Range $6-13. Growing organically and through acquisitions. This is NOT an ADR, but don’t have as much info about the company as I would like. Management/Board seem to be a rather cozy bunch. Not necessarily bad, but something to consider.
One concern I have is that, as a foreign corporation, OTIV may have limited upside to security applications in US. Expanding quite nicely and broadly around the world. Sales ramping up faster than company or analysts expected. Nice partnerships. 2004 Nasdaq. In Bullish trend. Expect selling spurts as shares are unlocked periodically (from acquisitions). Shorted (as of March 07, 6 days to cover).
Even after nice return (16 score in less than 2 months), I still see as fairly undervalued and unloved with most of the growth still ahead. HOLD.
“Established in 1990, OTI (NASDAQ: OTIV - News) designs, develops and markets secure contactless microprocessor-based smart card technology to address the needs of a wide variety of markets. Applications developed by OTI include product solutions for petroleum payment systems, homeland security solutions, electronic passports and IDs, payments, mass transit ticketing, parking, loyalty programs and secure campuses. [Border crossing and medical applications, too]. OTI has a global network of regional offices to market and support its products. The company was awarded the Frost & Sullivan 2005 and 2006 Company of the Year Award in the field of smart cards. For more information on OTI, visit www.otiglobal.com.”
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looks on track for year over yaer earnings
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This great company with innovative product that compete the smart card market
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