OPMR
- (recommended
to subscribers
on 2/2/04)
BOUGHT
at $8.74 SOLD
at $17.09
On September 30th 2003 Optimal Robotics Corp, a provider of
self-checkout
systems and services for retailers, reported 3rd quarter 2003 revenue
of
$15.4 million which was down from $21.4 million in the 3rd quarter of
2002.
Net loss was $2.1 million or 14 cents per share. The loss included a
$502,000
restructuring charge relating to head count reductions. For the first 9
months of 2003 revenue was $48.3 million compared to $61.3 million in
the
first nine months of 2002. Net loss was $3.1 million or 22 cents per
share
in the first 9 months of 2003.
At the end of the
3rd
quarter OPMR had
cash and investments worth $76.5 million or $5.12 per share and $9.6
million
of debt. Book value was $7.03 per share. On January 20th 2004 Optimal
Robotics
announced they would acquire Terra Payments, a Canadian payment
processing
company. Shareholders of Terra Payments would get approximately .45 shares
of OPMR for each share of Terra Payments. On January 28th 2004 Terra
Payments
reported quarterly income of $1.2 million on approximately $12 million
in revenue which was up 27% over the year earlier period. Gross margins
were 56%. Optimal Robotic's revenues will increase significantly after
the acquisition which is expected to close in the 2nd quarter of 2004.
In addition OPMR made another acquisition in the 3rd quarter of 2003
which
will add about $30 million in revenue annually. At the current price
OPMR
trades at approximately 1.4x
the combined
companies
revenues. The combined company will have approximately $90 million in
unrestricted
cash and investments or $4.05 per share. The combined company will have
a book value of approximately $5.70 per share. Per share figures take
into
account the increase in shares outstanding due to the acquisition. In
addition,
last week the company announced it had settled a long standing patent
dispute
with IAUS.
In the chart above
you
can see that OPMR
broke it's long-term downtrend line. Over the last 18 months OPMR has
also
put in a very broad inverted head and shoulders bottoming pattern. The
left and right shoulders are circled.
3/10/05
- SOLD
AT $17.09 FOR A GAIN OF 96 %. DURING THE SAME PERIOD THE NASDAQ
WAS FLAT.
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