TNS, Inc. (NYSE:TNS)
The Company is a provider of business-critical data communications services to processors of credit card, debit card and ATM transactions. Also provides secure data and voice network services to the global financial services industry.
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A price to earnings just tickling 200..... hmmmm and if you used benjamin graham's formula for intrinsic value with a growth rate of 15 percent for the next 5-10 years you would get a intrinsic value just about $4... hmmmmmmm...... it's very vulnerable to europe... hmmmmm...... pretty much all technicals are pointing down hmmm.......... can you say no brainer?
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There is less momentum, less volume, and less buying going on. We are in the last part of this rally.
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TNS Inc to acquire Communcation Service Group from VeriSign for $230 mln in cash (TNS) 6.28 -0.41 : Co enters into a definitive agreement with VeriSign (VRSN) to acquire its Communication Services Group for $230 mln in cash. The transaction is expected to be accretive to TNS' 2009 earnings upon close. CSG operates one of the largest un-affiliated SS7 (Signaling System No. 7) networks in the US, is a provider of intelligent database services, such as caller ID, to the telecom industry, and provides roaming and clearing services to the wireless telecom industry.
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Once the press gives this one some attention, fuggetaboutit. Think about it, MA and V off to the races, this one will be too given the opprotunity. Oh yeah, they just went from negative income to positive in Q4 of 07. Recession and credit cards?
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Buyout Candidate
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Going for the "hot one star" stocks here.
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Since this company pretty much holds the U.S. market for the type of services they provide; they should at least reamain steady.
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this could be the stock of the future. with many countries slowly moving to cashless transactions. more and more use of atm and debit transactions. this will be the next big thing. with paper money becoming more and more outdated. and the slow transition to a cashless global tansactions this is the next big thing. being a gobal company helps even more.
Recs
My call on TNS is a trading call. TNS, Inc. provides data communications services to processors of credit card, debit card, and ATM transactions. The company has been a managerial mess for over a year now. In fact, for about three months, the company had no CEO. Despite that, the earnings kept chugging along. The old CEO also spent all kinds of coin on new technologies, while the new CEO is focused on cost controls. The new CEO is so confident of the cash flows, the company just announced a special $4 dividend. The company should be able to cover the interest expense about 4x, so it shouldn't be a problem. Despite this, the stock tanked about 8% on the news. I think the stock will make that back in the next couple of weeks as investors get more comfortable with the dividend. And if worse comes to worse, the company has gotten two offers to buy it for over $20 in the past year. At $15.80, I think the stock has over-reacted to the news and is worth buying for a trade.
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