Paysign, Inc. (PAYS) research, news, and more from GeoInvesting

Company description

Wed, 13 Nov 2019 15:09:27 GMT

PaySign Inc is a prepaid debit card payment solutions provider as well as an integrated payment processor that has many prepaid debit cards in its portfolio. It designs and develops payment solutions, prepaid card programs, and customized payment services. Through the platform, it provides services including transaction processing, cardholder enrollment, value loading, cardholder account management, reporting, and customer service. It manages programs for many of the pharmaceutical manufacturers with co-pay assistance products designed to maximize new patient acquisition, retention, and adherence.

Research

Tue, 13 Nov 2018 16:21:29 GMT

3pea International (OOTC:TPNL)($3.82, $167M market cap), a prepaid debit card payment solutions provider and integrated payment processor, announced Q3 2018 financial results:

Sales of $6.4 million vs $4.0 million in the prior year
Non-GAAP EPS of $0.03 vs $0.02 in the prior year

“The third quarter of 2018 was an especially good quarter for 3PEA as we continued our growth in both revenue and net profit. We are pleased with our sustained strong performance and solid operational execution,” said Mark Newcomer, Chief Executive Officer, 3PEA International. “We are particularly pleased with our strong sales pipeline as we head into 2019. We continue to seek acquisition candidates that will broaden our customer reach and enhance product offerings.”

“During the third quarter we had strong results across the board,” commented Dan Henry, Chairman, 3PEA International. “We continue our momentum and executing on our strategic initiatives. As we look ahead to the fourth quarter, our focus continues to be on improving long-term profitability and sustainable performance.”

“The increase in revenue in the third quarter and nine month period was primarily a result of growth in our cardholder base in newly launched and existing card programs,” said Brian Polan, Chief Financial Officer, 3PEA International. “We expect our revenue growth to continue at comparable rates for the foreseeable future.”

In 2016, GeoInvesting contributor William Xion wrote on TPNL in an article titled, “3Pea, A High Growth Company in the Prepaid Card Payment Industry”, where he cited the domestic and international prepaid card growth as a long term catalyst for TPNL. We subsequently included the stock in our “Run to One” model portfolio at a price of $0.49 in July of 2017, with the stock eventually peaking at a return of near 1000%, one of the best Run to One performers in the history of GeoInvesting.

Mr. Polan’s comments on growth will have us analyzing what the future looks like in terms of valuation for TPNL for the longer term, and most likely warrants an interview with him.

Research

Thu, 09 Aug 2018 14:05:41 GMT

3pea International (OOTC:TPNL) ($3.35, $146M market cap), a company that provides prepaid card products and processing services under the PaySign brand name to corporations, government agencies, universities, and other organizations, reported its second quarter results.

Adjusted EBITDA for the three months ended June 30, 2018 was $1,194,684, an increase of 70% compared to adjusted EBITDA of $703,886 in the same year ago quarter
Second quarter 2018 revenue increased 60% to $5.5 million compared to $3.4 million in the same year ago quarter.

Management’s commentary:

“We are pleased with our sustained strong performance and solid operational execution as we look ahead to further growth,” said Mark Newcomer, Chief Executive Officer, 3PEA International. “With a strong pipeline in place, we have begun to see revenue contribution from our expanded efforts in the biopharma and corporate incentive verticals. As part of our longer term strategy, we are actively pursuing acquisition candidates that have long standing reputations, a corporate culture of innovation, and demonstrated growth and profitability.”

“During the second quarter we had strong results with all key metrics beating expectations,” commented Dan Henry, Chairman, 3PEA International. “We also made further progress on our expansion in key verticals. We look forward to our continued growth as we expand the breadth and depth of our product offerings.”

Please see the commentary we released yesterday after the company’s announcement that it will begin trading on the NASDAQ on August 10, 2018.

Research

Wed, 08 Aug 2018 14:44:45 GMT

3pea International (OOTC:TPNL) ($3.14, $137M market cap), a payment solutions company providing prepaid card programs and processing services for corporate, consumer and government applications, will begin trading on the NASDAQ Global Market on August 10, 2018.

We’ve been following this stock since 2015, and briefly took a long position in the stock when it was well under $1/share. We felt that based on a record Q4 2015 earnings report, the company would gravitate to near $1/share. Unfortunately, we only took a swing profit on the stock’s positive move.

Not too long after the inception of our coverage, GeoContributor William Xion published “3Pea, A High Growth Company in the Prepaid Card Payment Industry” in January 2016 when the stock was trading near $0.25 per share, arguing that there was limited downside.

Later, as the company’s story seemed to be gaining more traction in 2017, we added it to our Run to One Mock Portfolio at a price of $0.49. Since then, the stock has performed remarkably as TPNL has transformed itself into a high growth enterprise with a predictable revenue model. The company continues to believe it can sustain its rapid top line growth that it has recently experienced. Today’s announcement marks a substantial milestone for the company to get more attention from a wider pool of investors.

Research

Thu, 07 Jun 2018 15:22:12 GMT

3Pea International (OTCCB:TPNL) ($2.27; $99.1M market cap), a vertically integrated provider of innovative prepaid card programs and corporate processing services, announced it has filed an application for listing on the NASDAQ:

“We believe that elevating the listing of our common stock to the Nasdaq Capital Market is an important step forward in our mission to maximize shareholder value,” said Mark Newcomer, Chief Executive Officer, 3PEA International. “We are confident that once our application is accepted, trading on Nasdaq will offer investors increased visibility and improved liquidity.”

“Uplisting will help capture institutional investors attracted to our growth proposition and provide for greater access to capital,” commented Dan Henry, Chairman, 3PEA International. “The filing of this application is further evidence of 3PEA executing on its long-term growth initiatives.”

We first added TPNL to the Micro-Cap Run to One Portfolio on July 12, 2017 when the stock was trading at $0.49.

Research

Mon, 14 May 2018 14:56:22 GMT

3Pea International (OTCCB:TPNL) ($1.40; $60.4M market cap), a vertically integrated provider of innovative prepaid card programs and corporate processing services, announced Q1 2018 results:

Sales of $4.6 million vs $3.2 million in the prior year
EPS of $0.01 vs $0.01 in the prior year

Quotes from management:

“The increase in revenue in the first quarter was primarily a result of growth in our cardholder base throughout our prepaid programs,” said Brian Polan, Chief Financial Officer, 3PEA International. “We experienced a significant improvement in gross margins as a result of reductions in cost and the addition of higher margin programs. We expect our revenue to continue to grow at comparable rates as we bring higher margin card products to market.”

We first added TPNL to the Micro-Cap Run to One Portfolio on July 12, 2017 when the stock was trading at $0.49.

Research

Mon, 02 Apr 2018 14:48:50 GMT

3Pea International (OTCCB:TPNL) ($1.17; $51.0M market cap), Last Monday, 3Pea Intl., a vertically integrated provider of innovative prepaid card programs and corporate processing services, became the 11th out of 20 stocks from our Micro-cap Run to One Mock Portfolio to increase over the $1 per share threshold.

For the newcomers to our service, this portfolio is intended to highlight smaller capitalized companies with real revenues, exceptional management teams and favorable capital structures, traits that set them apart from more speculative Pump and Dumps and promotional schemes that GeoInvesting has had a hand in identifying over the years.

We first added TPNL to the Portfolio on July 12, 2017 when the stock was trading at $0.49. On the heels of strong full year 2017 results released last week, the stock surpassed the $1 mark, reaching a new high of $1.19.

Unfortunately, we did not take a position in TPNL. Nonetheless, it is validation for us that quality prevails over junk over the long haul and that hunting in areas of the stock market that others ignore, due to misunderstood negative stereotypes, creates tremendous opportunity.

Research

Tue, 14 Nov 2017 15:46:41 GMT

3Pea International (OTCCB:TPNL) ($0.57; $24.7M market cap), a vertically integrated provider of innovative prepaid card programs and corporate processing services, announced Q3 2017 results:

Sales of $4.0 million vs $2.8 million in the prior year
EPS of $0.01 vs $0.01 in the prior year

Quotes from management:

“Our pipeline continues to remains strong, and we look forward to continued top and bottom line growth in the remainder of 2017 as we continue to develop innovative payment solutions for corporate, government and consumer markets.

The increase in revenue in the third quarter and nine month period was primarily a result of growth in our cardholder base throughout our prepaid programs,” said Brian Polan, Chief Financial Officer, 3PEA International. “We expect our revenue growth to accelerate for the remainder of 2017, as we launched a record number of programs this year, reflecting an increase in card programs of more than 65 percent, year over year. Although gross margins remained unchanged year over year, third quarter gross margins were negatively impacted by costs associated with launching new card programs. The company expects gross margins to improve in 2018, as the newly launched programs mature.”

TPNL is a run to one candidate that we are keeping an eye on heading into 2018 as it continues to place more emphasis on its more promising operating divisions, creating a less lumpy revenue stream and increasing its margins as product ramp-up costs begin to dissipate.

Comments & Business Outlook

Fri, 11 Aug 2017 14:55:39 GMT

TPNL ($0.51)reported Q2 2017 results:

Sales of $3.42 million vs $2.38 million in the prior year
EPS of $0.01 vs $0.01

Quotes from management:

“We are pleased with our second quarter results, as we enter an exciting period of accelerated growth,” said Mark Newcomer, Chief Executive Officer, 3PEA International. “In the first half of 2017 we made the investments necessary to ensure the successful launch of many card programs for new and existing clients. Our pipeline remains strong as we continue to implement new card programs and develop new products and services for our existing cardholders and clients.”

“The increase in revenue in the second quarter and six month period was primarily a result of growth in our cardholder base throughout our card programs,” said Brian Polan, Chief Financial Officer, 3PEA International. “We expect our revenue growth to accelerate for the remainder of 2017, as we expect to launch more than sixty new card programs during the second half of 2017, reflecting an increase in card programs of more than sixty five percent, year over year.”

Research

Mon, 10 Jul 2017 13:44:29 GMT

**Run to One Mock Portfolio Update

We are adding $TPNL ($0.49) to the “Run to One” Mock Portfolio.

In October of 2014, we began to track TPNL due to several factors including growth, scaling, customer experience, higher margins and customer acquisition efforts. The company is a payment solutions company providing prepaid card programs and processing services for corporate, consumer and government applications.

In March of 2015, TPNL reported a record quarter and we felt the stock, still trading under one dollar per share at the time, could at least trade above $0.80 per share and possibly attain the $1.00 per share threshold. It did go on to reach an all-time high of $0.98 in April of 2015. It was “unclear to our team if TPNL’s Q4 2014 breakout quarter would be repeatable”, so we dove in for a swing trade, scalping $0.29 of gains before the stock continued its run. Our main concern at the time of our initial alert was lack of sales in earnings growth consistency, due to the lumpy nature of its customer relationships in one of its divisions, and this concern (on the EPS side) seems to have played out over the last few years.

Until recently, shares have been weak, spending most of 2016 at around the $0.20 range before a late spike at the end of the year to near current levels..

After a preliminary interview with management over the weekend we are now comfortable that revenue is entering a more predictable and aggressive growth phase due to a shift in the mix of business and positive industry trends. While we are not quite sure that EPS growth has reached an “consistent growth inflection point”, we think the company can maintain profitability at around a penny for the next few quarters, before ramping up in 2018. We will continue to dive into the story and possibly provide an update.

Reasons For Tracking

Mon, 13 Oct 2014 04:00:00 GMT

We are beginning to track3pea International, Inc. (NBB:TPNL) ($0.25) designs and develops payment solutions including proprietary payment terminals, secure key loading systems, prepaid card systems, and various payment services. Will begin tracking due to management forecasting record revenue and net income for 2014. Reasons for tracking:

After 3 years of unimpressive growth (including first half of FY 2014) management is forecasting record revenue and net income for 2014. 3PEA expects 2014 revenue of $9.25 million to $9.75 million as compared with revenue of $6.3 million in 2013, an annual increase of 47% to 55%. The Company also expects 2014 net income to surpass record levels.
It appears the company has invested capital to scale its business.
Improved its web portal to enhance the customer experience.
Focusing on selling higher margin products.
Company is in the process of expanding its customer base.

According to the company description on its most recent 10Q filing,

“We have developed prepaid card programs for healthcare reimbursement payments, pharmaceutical co-pay assistance, corporate and incentive rewards and expense reimbursement cards. We plan to expand our product offering to include payroll cards, general purpose re-loadable cards, and travel cards. Our cards are offered to end users through our relationships with bank issuers. "

We generally are attracted to companies that offer outsourcing to it customer base, especially in markets where cost reduction is a strong theme, such as the health insurance industry. According to the company, network branded prepaid cards allow consumers to have better control over their budget while these cards work like traditional debit/credit cards and offer many of the same fraud and loss protections. They access funds pre-paid for the cardholder that have been loaded by either the cardholder, another consumer (as a gift), the government for benefits, employers/corporations for payroll, or by a corporation for rewards/incentives, or health benefits. As a non-credit payment tool, they help the users control their budget.

Network branded prepaid cards are relatively new, but incredibly useful financial tools for millions of Americans. Network branded prepaid cards provide consumers, businesses and governments with the efficiency, security and flexibility of digital payments through a non-credit payment option. Most network branded prepaid cards benefit from broad acceptance, as they can be used anywhere the card brand (Amex, Discover, MasterCard, Visa) credit/debit card is accepted and they provide the end user security against fraud and theft.

The company claims it has enough capital to sustain operations for the next 12 months. Although shares are trading at a reasonable TTM P/E of 25, based on a TTM EV to adjusted EBITDA of 14.0 and an EV to sales of 0.6. Shares could offer some upside from current levels. We will request an interview with management.

Caveat:

Need to verify managements claim to raise money. Volatile chart over last year, current ratio is less than one.