VASCO Data Security International, Inc. (NASDAQ:VDSI)

long +

Earning beat and,

VASCO is reaffirming its guidance for the full-year 2012 as follows:

•Revenue for 2012 is expected to be $175 million or more, and
•Operating income as a percentage of revenue, excluding the amortization of purchased intangible assets, for full-year 2012 is projected to be in the range of 13% to 16%.

I sold this stock back at $14 and change. Now here it sits just below $7. I'm not sure I will buy back in, but I think it's worth a shot with regard to a CAPS entry. Yes, the services they offer are, or should be, in high demand. The problem is that VDSI has no real moat to speak of. In their industry, I view them as competent but not formidable. The PEG ratio at 2.5 is higher than I like, but tolerable. The P/E is now more reasonable at about 19. All in all, I'm thinking the stock has a reasonable shot at a 50% gain in the next year or two.

smart & nimble innovator

Smartphones, Tablets, Laptops and basically anything else that is electronic requires PCB's (printed circuit boards). This company produces those in 8 plants based on the United States and 1 plant in China. With smartphone saturation at only 3-4% worldwide, the upside of this company to supply that industry (along with new customers in Aerospace/Biotech/Automotive industries) this company is bound to succeed. Recent acquisition of an Asian company with almost the exact same size and makeup only helps their cause. Should be a fun ride up!

I love the momentum of this stock and how it keeps beating the SPY Index time and time again. Security systems and IT are going to remain a prominent winning combination for years to come.

Vasco really has no moat. Tech is highly competitive and subject to geek-birth at any time. Banks also have other more pressing issues than record security ----- their ownership security. I own way too much of this stuff and I have learned to not listen to "you-know-who."

It just has to do better!

Great technology, lousy stock. Company has a huge global banking presence except in the US. Seems like a bargain at single digits, and one of the few left on NASDAQ.

64,71,83
89,83,74

Secure software systems will be a must in the future. This company has some very large banking clients and as the banking industry recovers this stock will also recover.

VDSI should be in double digits before next summer. I think it can crawl it's way to $8 before the year ends. Then it will continue to climb its way back towards $20 in a few years. Get in now or hate yourself later! (I put A LOT of real money into it..backing up my words)

This is one of my STARZ.
Here is the thought process on this STAR:
a) Divided rate over Zero
b) 3 Year Beta between -5 & +3
c) 15% + Insider ownership
d) No greater than -50% Growth rate for the last 3 years (tough last couple of years so good that insiders are still owning the stocks)
e) Current CAPS rating between 3 Stars & 5 Stars
Open to all Industries and Sectors screened this down to just 250 stocks. I like round numbers. 12 of them I already own through other screening tools. I tend to be somewhat conservative but looking for 3 things at this point in my investing:
1. Stability & Strength
2. Yield and Modest Growth
3. Strong Position within a sector regardless of whether the
entire sector is strong or not. Each sector has to perform to some degree for the whole world economy to function. I am looking for 5 or more years down the road, ROI, and Growth. Not looking for rockets, just stars. This is a Star!!

Security gaining new customers and forward guidance looks good.

Putting my money where my pick is ... bought today at $6.44

Picked up 438 new customers (including 52 banks) in Q1, but still managed to miss earnings estimate. However, they reaffirmed full-year 2010 guidance of 15% - 20% revenue growth. Even though Q1 net income was down on 3% increased revenue over Q1 last year, I'm figuring that with continued customer and revenue increases, they should be able to turn earnings around later this year and into 2011. Besides, after missing Q1 estimates, they're on sale today.

Low current price and recovering markets will lead to earnings and stock price gains which will beat the S&P.

ok

good company