Net 1 Ueps Technologies, Inc. (UEPS)

Solid Quarter -- Fundamental EPS of $.45 vs street est of $.43 (Gaap eps of $.37 includes acquired asset intangible amortization); EBITDA of $33.3M; EBITDA Margin of 50.8%!..Enterprise value less Cash / Annualized Ebitda = 5.17; Cash Generation of $37M;

Solid execution translated to margin expansion and continued strong cash generation. Cash generation of this firm is very impressive. At the current rate, this firm could have enough cash to buy back all outstanding shares at the current market price in less than 5 years!!!!!

I look forward to hearing more strategic commentary on future growth opportunities, emerging countries, & guidance on use of cash (acquisitions, additional stock repurchase, etc.)...

Joel Greenblatt Pick