Targeted Strategies for Today's Evolving Markets

MissionIR Blog

Wednesday Wonder – Integral Systems Inc. (ISYS)

No established analyst had predicted in 2007 that this stock would appreciate by 50% in the first half of 2008. There is a lesson here that enterprise value matters more than management strength. Incumbents do change. Regulatory defects can be corrected. However, it is the relevance of a business that should occupy dominant parts of investor minds.

The stock split announced by this company makes investor support even more enticing than before. The Price to Earnings Ratio has stayed below 23 though the stock price has more than doubled over its 52-week low for August 2008. The Beta is 0.03 and the Yield is 0.56. Clearly, this is a nearly unique investment opportunity in the current market scenario.

A financial institution with a significant holding in the past has now exited the Board and the stock altogether. This raises questions about safety of capital for new entrants. However, a detailed scrutiny of business performance shows that investors should have no real concerns.

Though the company has significant dependence on volatile government contracts, it has performed at least on par with its peers from the Computer Services Industry. This applies to the Dividend Yield over the past five years and to the Net Profit Margin as well. The company is free of debt. The management has announced plans to invest in new acquisitions.

Satellites will not lose any relevance in the foreseeable future. Investors can rest assured about future returns from this stock, given the company’s robust technology in ground support systems, and stable mix of government and corporate clients.

Let us hear your thoughts below:

This entry was posted in Small Cap News. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *