Last week, I bought shares of Points International (Nasdaq: PCOM or Toronto: PTS.TO for my Canadian followers) for roughly $7 a share. Be prepared for some movements this week as they will be presenting their Q4 results this Wednesday (March 8th).
(I have to say that what’s in this email represents my opinion only and it’s purely for your information. Also, always seek advice from registered investment advisors before investing and read this important disclaimer.)
- Nice sales growth of roughly 10% (organic, 75% long term contract)
- Strong balance sheet with $48M of cash on it, no long-term debt*
- Generates good cash flows per year
- Decent price/cash flow ratio ~8
- Strong enduring competitive moat -> That's what I like the most
* Points Intl has a liability revolver account for the "payable to loyalty program partners". The Corporation will typically remit funds to loyalty program partners approximately 30 days after the month of loyalty currency sales.