Q: Hi 5i Team,
I bought Tecsys two years ago @41 before it was included in 5i portfolio, and watched it went down to 28. It rebounded around but I didn’t sell and until it lately breaks out to one year high, any news ? What do you think this company going forward?
Thanks as always.
I bought Tecsys two years ago @41 before it was included in 5i portfolio, and watched it went down to 28. It rebounded around but I didn’t sell and until it lately breaks out to one year high, any news ? What do you think this company going forward?
Thanks as always.
5i Research Answer:
TCS is now up 34% this year and 74% over 52 weeks. We still like it; business is good, it has net $34M cash, earnings and revenue continue to grow nicely. EPS is expected to more than double this fiscal year (year end is April). These qualities do not make it cheap--it is 73X earnings. But we like the trend. Insiders own 16% and there has been some buying. The dividend is low but we might expect another increase this year. EPS nicely beat estimates last quarter (by 37%). We think it remains buyable.