PYDS
Ayer recibí una comunicación en mi mail sobre esta compañía...
Y hoy podéis ver lo que está haciendo...
Payment Data Systems, Inc. (NASDAQ: PYDS)
Payment Data Systems is an integrated payment solutions provider to merchants and billers. Payment Data Systems recently announced the acquisition of Singular Payments LLC, which is a prominent player in the merchant billing software segment. The benefit for Payment Data Systems is that the acquisition will extend its services in the Healthcare market, the focus of Singular.
Singular Payments is a Fintech payments provider that relies upon innovative technology to process payments for merchants in healthcare and other niche verticals nationwide. Singular is primarily focused on custom software integrations of their flat rate payment processing offerings and their proprietary, simple-to-use electronic bill presentment and payment (EBPP) platform which allows merchants to streamline the costly and labor intensive process of invoicing and collection. The non-binding Letter of Intent to acquire Singular Payments was announced on March 13, 2017.
Payment Data Systems will also gain access to payment processing technologies possessed by Singular. One of the technologies of Singular is Card Connect. This technology lets the payment processor offer better security for the transactions as it does not require dial-up connection at credit card terminals for providing point to point merchant processing encryption. The technology will develop synergies within the two entities and is expected to be integrated with current offerings of Payment Data Systems.
Payment Data Systems is positioned to use the Singular collaboration to drive up its revenue and boost its position in the market. Singular is reported to have processed 2.5 million transactions worth nearly $400 million through its systems in 2016. Payment Data Systems processed over $2.9 billion worth of transactions during the same period. The acquisition could increase the transactions volume at PDYS by 15% and maybe more as the synergies within the two companies kicks in.
According to a recent research by MarketsandMarkets, the contactless payment market is estimated to grow from USD 6.70 Billion in 2016 to USD 17.56 Billion by 2021, at a Compound Annual Growth Rate (CAGR) of 21.2% during the forecasted period. Contactless payment solutions help organizations and individuals to ensure secure payments with increased convenience, while enhancing operational efficiency. The PYDS move to acquire Singular, and broaden their scope in the market will ensure they get a bigger slice of the predicted CAGR growth in the industry.
PDYS has two operating entities, Payment Data Systems, Inc. and FiCentive, Inc., and their primary business is processing electronic payments for other companies including all types of Automated Clearing House or “ACH” processing, credit, prepaid card, and debit card-based processing. Payment Data Systems is headquartered in San Antonio, Texas, and has offices in New York, New York; and Long Beach, California. Singular Payments is in St. Augustine, Florida.
The stock price is currently down about 60% percent from its 52 weeks high of $3.80. The stock price decline may mainly be attributed to higher costs incurred because of increasing scales and its acquisition activity in 2016. These prior acquisitions and collaborations, as well as the Singular deal, are expected to start yielding results in the current and upcoming year.
With only 11.8 million shares outstanding (as of March 15, 2017) and an
estimated float of 6 million shares, the current low price of the stock may offer an opportunity for investors with mid to long term investment strategies.
"Le haré una oferta que no rechazará" - Vito Corleone (Marlon Brando) El Padrino