Lombardi: Expert Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986
Stock Market Commentary & Forecasts, Financial & Economic Analysis

Welcome to Profit Confidential • Tuesday, May 22, 2012

Wall Street Should Be Excited About This Stock

Monday, September 11th, 2006
By Mitchell Clark, B.Comm. for Profit Confidential

No-one on the Street is talking about one particular market sector or another these days. No-one is at all excited about any one industry either, and even the enthusiasm for China’s stocks has waned. In this environment, it is difficult to decide where you should put your money.

One area of the stock market that isn’t getting the respect that it deserves is the software sector, as well as the broader technology and telecommunications industries. Right now, there are all kinds of well-managed, growing technology companies that just aren’t getting the attention they deserve.

One company that I’m enjoying following is Open Solutions Inc. (NASDAQ/OPEN). This company sells software solutions to financial institutions, and the stock has an excellent track record on the market.

I always look twice at companies that are successful at selling to large financial institutions simply because these customers have a lot of money! In fact, they have so much money that if a company can do a good job selling to them, it can generate a lot of recurring revenues.

Open Solutions sells the kind of software you might think a financial institution would need. At a bank or other financial business, there are all kinds of account transactions to keep track of, and maintaining the data accurately requires sophisticated technology.

In the second quarter of 2006, Open Solutions’ revenues more than doubled to $107.1 million, up from revenues of $47.1 million in the comparable quarter in 2005. The company’s recurring revenues accounted for 77% of total revenues in the latest quarter.

Net income grew to $4.1 million, or $0.19 per share, up modestly from the net income of $3.8 million, or $0.18 per share, generated in the same quarter last year.

The company recently raised its guidance for fiscal 2006, and the stock has been in an upward trend ever since it listed on the NASDAQ.

Open Solutions is precisely the kind of software company I’m interested in. It has a great customer base with piles of cash, lots of recurring revenue streams, and a track record of success both operationally and on the stock market. Frankly, Wall Street should be more excited about this opportunity than it is.

Next Post:
Previous Post:

Tags: ,










Sign Up for PROFIT CONFIDENTIAL and
receive a FREE copy of our exclusive report:
"A GOLDEN OPPORTUNITY FOR STOCK MARKET INVESTORS"

Enter e-mail:

We respect your privacy and
will never share your e-mail address.



Profit Confidential AuthorMitchell is a Senior Editor at Lombardi Financial specializing in small-cap stocks. He’s the editor of a variety of popular Lombardi Financial newsletters, such as Penny Stock Reporter, Micro-Cap Stocks, and Monster Profits. Mitchell, who has been with Lombardi Financial for thirteen years, won the Jack Madden Prize in economic history and is a long-time student of equity markets. Prior to joining Lombardi, Mitchell was as a stock broker for a large investment bank. While Mitchell is not working he enjoys fly fishing, motorcycling and tending to his hobby farm.

Daily Profits


Enter your e-mail address to subscribe to
Profit Confidential — IT'S FREE!
Enter e-mail:
ALSO RECEIVE A FREE COPY of our exclusive report:
"A Golden Opportunity for Stock Market Investors"

McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams

 

Corporate
About Us
Privacy
Disclaimer
Contact Us
White List
Sitemap

Profit Confidential
Predictions
Gurus
Archives
FREE Sign-Up
RSS
Twitter
Facebook

Editors
Michael Lombardi
George Leong
Mitchell Clark
Tony Jasansky
Robert Appel
Wendy Potter
Sasha Cekerevac

Topics
Gold Stocks
Stock Market
Bear Market
Bull Market
US Dollar
Euro
Interest Rates

Expertise
U.S.Deficit
Real Estate Market
Debt Crisis
Chinese Economy
Economic Analysis

Guidance
Investment Guidance
Retirement Plan
Chinese Stocks
The Best Stocks
Gold Stock Picking
Real Estate Investment

Resources
Gold
Precious Metals
Real Estate News
Gold Investments
Investing in Real Estate


Profit Confidential Disclaimer