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SmallCapPower
Box Score
Daily Stocks on the rise
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The Ubika Research Tech Stock Watchlist
| Redknee Solutions Inc. (TSX:RKN) |
| Company Name: |
Redknee Solutions Inc. |
| HQ Location: |
Mississauga, Ontario |
| Company Website: |
www.redknee.com
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| Shares Outstanding |
59.2 Million |
| Market Cap: |
$71.05 Million |
| 52 Week Range |
$0.17-$1.4 |
| Average Daily Volume |
141,000 |
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Share Highlight / 1-Year Stock Chart
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Business Overview
Redknee is a leading global provider of innovative communication software products, solutions and services to the telecom carriers. Redknee's award-winning solutions enable telecom operators to monetize the lifetime value of each subscriber transaction while personalizing the subscriber experience to meet mainstream, niche and individual market segment requirements. Redknee's revenue generating solutions provide advanced converged billing, rating, charging and policy for voice, messaging and new generation data services to over 70 network operators in over 50 countries. Established in 1999, Redknee Solutions Inc.(TSX: RKN) is the parent of the wholly-owned operating subsidiary Redknee Inc. and its various subsidiaries.
What is interesting?
The following are key investment highlights:
- The company is offering a critical and sticky function for telecom carriers: billing which tend to give them more stable revenues
- Has some patent protection
- Sticky customers who tend to stay for a long time as it is hard to switch to a competitor.
- Inflection point in 2009 with positive EBITDA compared to previous years
- Good customer base with over 70 telecom carriers in over 50 countries as customers and good customer acquisition in 2009.
- Exposure to the fast growing emerging markets were cellular phone growth is still very robust and forecast to be robust for years to come.
- Strong and growing recurring revenue stream of over 40% with decent top line growth and good gross margin which is rising.
- Strong balance sheet with cash of $25M and a $10M line of credit (unused) with no debt.
Risks
Telecom sector is a fast moving sector and software service providers have to continuously innovate, to stay current with the latest emerging trends and business models. The stock has had a decent run in the last one year and may need additional catalysts for further appreciation.
Redknee Solutions Inc. News
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