PI Financial Corp Updates Coverage and Buy Recommendation on TIO Networks (TSXV:TNC) - Video Research Alert Posted on InvestmentPitch.com
(Thomson Reuters ONE) -
Vancouver, British Columbia, July 16, 2013 - PI Financial Corp. updates coverage
on TIO Networks (TSXV:TNC). Following the company's announcement of the
acquisition of Globex Financial, analyst Pardeep Sangha reiterated his buy
recommendation, increasing his 12-month target from $0.40 to $0.60, a premium of
107% to the $0.29 price the day the report was issued.
InvestmentPitch.com has produced a "video research alert" based on this report.
If this link is not enabled, please visit www.InvestmentPitch.com and enter "TIO
Networks" in the search box.
TIO Networks is a cloud-based bill payment processor serving the largest
telecom, wireless, cable and utility bill issuers in North America. The company
provides bill payment, pre-paid debit card and money transfer services from its
multi-channel network of kiosks, point of sale terminals, web and mobile.
The purchase price of Globex is approximately US$8 million, with the company
funding the acquisition with cash on hand, $2 million in debt and the issuance
of $3 million in equity to Core Innovation Capital, at a price of $0.35 a share.
Globex Financial, and its operating business Global Express Money Orders, is one
of the leading walk-up bill payment processors in the United States. Some of the
major utility and telecom billers that use Globex include Verizon Wireless, Duke
Energy, Florida Power and Sprint. Globex recorded revenue of more than US$10
million in 2012, with gross margins that are significantly higher than TIO's
historical gross margins.
Hamel Shahbazi, Chairman and CEO of TIO Networks stated, "The combination of TIO
and Global Express will create a formidable market leader in key segments of the
under-banked financial services marketplace."
The transaction is expected to close later this year after regulatory approvals
and requirements have been satisfied.
Analyst Pardeep Sangha stated, "We like this transaction because it
significantly reduces TIO's biller concentration, increases the company's
margins and reduces the impact of the declining Cricket Wireless revenues."
The company currently trades at $0.32, well below the $0.60 target price, and
with 46.6 million shares outstanding, the company is capitalized at $14.9
million.
For more information about TIO Networks, please visit the company's website
www.tionetworks.com or contact Brett Mass of Hayden IR at 646-536-7331 or email
brett(at)HaydenIR.com.
For more information about PI Financial or to obtain a copy of their research
report, contact your nearest PI Financial office. Their branches are listed on
their website at www.pifinancialcorp.com.
About InvestmentPitch
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multiple platforms to investors and financial professionals, specializes in
producing three minute videos based on news releases and research reports.
CONTACT:
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Source: InvestmentPitch via Thomson Reuters ONE
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Datum: 16.07.2013 - 23:10 Uhr
Sprache: Deutsch
News-ID 279043
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