SYLOGIST LTD (SYZ.V)
Despite all that chat of large cap, I continue to be drawn by small and micro 
cap names. I opened a small position on SYZ.V this morning ($1.90), a micro cap ($26 million) software company based in Calgary, Alberta, Canada. Strong growth on revenues, net income, EPS and free cash flow. Strong ROE, large backlog (hence strong visibility). Clean balance sheet. Very cheap valuation. I expect the company to make $0.2 for FY06 (September 06) and $0.3 for FY07. At current level, it is traded at 9.5X of its 06 EPS and about 6X of 07 EPS.
The company just announced that it is raising $5.0 million cash by way of a private placement at $1.9, resulting in a 10% decline in the past few sessions, an opportunity for long term investors. I believe it will announce a decent Q406 and analyst (only one) will look at FY07 EPS for valuation. Even give it a 10X multiple, it will be at $3.0 level, which is my target for next 12 months.
Position: Long SYZ.V
cap names. I opened a small position on SYZ.V this morning ($1.90), a micro cap ($26 million) software company based in Calgary, Alberta, Canada. Strong growth on revenues, net income, EPS and free cash flow. Strong ROE, large backlog (hence strong visibility). Clean balance sheet. Very cheap valuation. I expect the company to make $0.2 for FY06 (September 06) and $0.3 for FY07. At current level, it is traded at 9.5X of its 06 EPS and about 6X of 07 EPS.The company just announced that it is raising $5.0 million cash by way of a private placement at $1.9, resulting in a 10% decline in the past few sessions, an opportunity for long term investors. I believe it will announce a decent Q406 and analyst (only one) will look at FY07 EPS for valuation. Even give it a 10X multiple, it will be at $3.0 level, which is my target for next 12 months.
Position: Long SYZ.V
posted by ZIGZAG at 9/28/2006 11:04:00 AM
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