Tucows, Inc. (USA) (NASDAQ:TCX)

CAPS Rating: 2 out of 5

The Company provides Internet services and downloadable software through a global distribution network.

Results 1 - 10 of 10

Recs

0
Member Avatar smallcapwiz (< 20) Submitted: 12/22/2015 2:22:54 PM : Underperform Start Price: $21.23 TCX Score: -2.01

The stock is priced to perfection. Competitiors keep on entering their MVNO space.

Take for example RingPlus an upstart has nuked Ting's business model by providing heavily discounted service at a fraction of Ting's cost. If Tucows ever decides to discount to match RingPlus' offerings it will take a dramatic hit to its gross margins and profits. Besides that there is a risk Tucows' rental of Sprint and T-Mobile's line may come to the grim reeper if they decide to hike the rates it charges Tucows. Tucows may deny that they are facing increased competition however from recent trends RingPlus has garnered a lot more attention.

Recs

0
Member Avatar j428192 (< 20) Submitted: 12/14/2015 3:15:59 PM : Underperform Start Price: $22.18 TCX Score: +2.69

The stock is terribly overvalued. Since this stock trades on both the TSX and the Nasdaq it is clear that the stock is trading well above its actual worth.

On the TSX the stock is trading well above the p/e of the TSX. With the TSX being mine and resource heavy this creates a validation that Tucows is trading well above its valuation.

As a company insiders have been selling with no recourse. The past three quarters the company has "managed" to miss both earnings and revenue (depending on while quarter). Ting it's growth driver is also slowing with tremendous speed due to increase competition and saturation in the market. Ting has no leveage due to not owning the actual pipes that mobile carriers such as AT&T, Sprint, TMO, Verizon own. Besides that competition from Cricket, Republic Wireless, Tracfone continues to limit Ting's relative reach.

The stock should be trading in the low 10s if growth continues to slide. Be cautious with this one folks. There's more red flags than green shoots here. BTW, fiber is a late 2016 story if at that. Currently there is no material revenue from their fiber purchase.

Recs

0
Member Avatar wswinnerwinner (< 20) Submitted: 10/2/2015 10:48:00 AM : Underperform Start Price: $23.35 TCX Score: +12.76

If there was a reason to own the stock the insiders sure don't show it. The stock has been a piggy bank for insiders to sell stock. The last time insiders have BOUGHT stock was in 2012 for $1.13 a share. Since that time various insiders including the CEO and CFO have dumped large amount of stock. Would you buy stock in a company if the insiders themselves don't have a stake in?

Not valued properly. And it isn't what you think. The stock shouldn't be valued based on its Ting's comp. It doesn't own the pipes which currently is owned by T-Mobile and Sprint. So if gains the subscribers should be made through T-Mobile and Sprint. The reason why I say this is that Ting doesn't have any leverage. If T-Mobile and Sprint were to raise what it charges from Tucows then what sort of leverage would Tucows have? Nada.

So if you subtract Ting or reduced the valuation given to TIng where are you going to find the rapid growth to support current valuations (market cap)? Domains? Who doesn't have one? That isn't going to bring in much upside.

The stock trades on both the TSX and Nasdaq. If you look at its Price to Book it is trading at 7x book value. If Tucows is in a slump and needs to sell its assets it is in some deep trouble. Besides this creditors when they look at Tucows lack of assets will find it saddled with a debt to equity of 252.9% in the red.

Recs

0
Member Avatar insidews (< 20) Submitted: 9/21/2015 1:51:42 PM : Underperform Start Price: $24.80 TCX Score: +15.04

Lets start with some facts.

1. Recent insider activity had the CEO and the CFO unloading large blocks of stock.Not only that insiders have granted themselves options at $2+ a share. While unloading them on anyone who is foolish enough to bid up their shares. For over two years they have not bought a single stock. If the insiders are not vested in the outcome in the co why should you?

2. MVNO competitors. There are thousands of MVNO co in the US. Ting is just one of them. The company has to compete against well establish co with large pools of money bags such as Cricket to content. Recently the new iPhone had Apple coming out with its own carrier plan. Ting won't be able to compete for the higher end especially when on the low end there is Walmart's option of TotalWireless. Again another well funded co to content against. If you look at the growth curve Ting is going in the wrong direction.

3. Valuation. While also trading on the TSX the stock trades well over 40x earnings. Tucows has missed on earnings the 3 out of the last 4 reported earnings. Is Tucows another Canadian co that will cause shareholders a world of pain?

Recs

0
Member Avatar fuzzybinary (< 20) Submitted: 7/28/2015 11:30:03 PM : Outperform Start Price: $27.86 TCX Score: -17.72

Though it's easy to focus on Tucows disruption in the mobile space with Ting, they already have a solid (and growing) business in Hover (stealing market share from other established players) and a growing disruption in internet service, providing fiber to small cities likely to be overlooked by large players (like Google and Comcast) while offering great customer service.

Consumer focused, low dept, great growth potential and disrupting several industries in need of disruption. A big buy in my book.

Recs

1
Member Avatar sellside (< 20) Submitted: 6/11/2015 12:17:24 PM : Underperform Start Price: $27.26 TCX Score: +15.31

The stock is priced to perfection.

The stock is trading at over 300% relative to the SP500 performance. Which means that the stock has been 300% of the SP500 bull market.

Deep inside the numbers the company hasn't produced as rosy.

The company has missed estimates three out of the past five quarters. While that isn't bad enough the investment community has been gitty with its sub numbers yet it is a drop in the bucket compared to AT&T, T-Mobile, Sprint, Cricket, Virgin Mobile and numerous others including international telcos.

As an MVNO Tucows' Ting doesn't actually OWN its network. It actually just rents it out. It has no leverage over a potential competitor whom may enter the space.

The Relative Strength of the stock has been in the 90s due to the limited float of the stock and the weak coverage of the stock of ONE single analyst.

Buyer beware. What goes up may come down. At 35x forward earnings with growth rates coming down for the next couple of years and insiders selling stock in the droves proceed with caution.

The last time an insider actually bought stock in the company was during 2013. Which when it was at a $1+. Not a single purchase has been made since that time.

Recs

0
Member Avatar hba24 (80.05) Submitted: 6/4/2015 4:34:12 PM : Outperform Start Price: $27.71 TCX Score: -17.13

Ting!

Recs

0
Member Avatar TMFTypeoh (74.44) Submitted: 5/25/2015 1:15:55 PM : Outperform Start Price: $24.54 TCX Score: -6.74

Terrifc performing stock over past 5 years. Still a small cap, but as a user of their Ting phone service, their cusutomer experience is quite good. Little debt, and fast growth predicted ahead. Worth a green thumb in caps.

Recs

1
Member Avatar naughtyguy (72.15) Submitted: 7/28/2014 6:58:45 AM : Underperform Start Price: $15.70 TCX Score: -32.73

Doesn't offer discounted phones and you have to buy the phones from them. If only paying for what you use saves customers money that means that concept isn't as profitable for the company. Uses Sprint network which doesn't have the coverage Verizon has.

Recs

0
Member Avatar jacobhaigh (91.12) Submitted: 8/26/2013 5:22:00 PM : Outperform Start Price: $2.32 TCX Score: +750.30

cash generating business with growth potential in an under served market (secondary phone service)

Results 1 - 10 of 10

Featured Broker Partners