TCX

[stockdabbler]

Is anyone following tucows stock?  Is this a good buy?  Any advice appreciated.  Thanks.

[AussieTrader]

Hey Dabbler,

I have TCX when it broke through $1 a few sessions back. Recently listed onto ASE and then news that Mark Cuban held a lot of TCX stoxk and wanted to add more helped it spike up to $1.28 couple days back. Fallen back to support now at $1 zone on decreasing volume. My expectation is that the pullback is a prelude to continuation and another look at the 52 week high zone at $1.32

Tucows, Inc.. The Group's principal activity is to provide Internet domain name registration and other online products and services. The Group offers its Internet services through a global Internet-based distribution network of resellers. These resellers are a heterogeneous group of companies including Internet service providers, web hosting providers, telecommunications and cable companies. The Group provides electronic publishing tools and services for publishers and other content creators. The Group also provides full text document and images from variety of publications such as Time, Fortune, Money and USA Today. On 27-Feb-2004, the Group acquired BlogRolling.com

[caressofsteel]

Will track this one, looks interesting.  This is a little off topic but do you or anyone else know if marc cuban still owns shares in CHTR?  Did the tree shake the meistro elsewhere

[stockdabbler]

Thanks AussieTrader for the input,

I have a question.  Should investors be concerned over the recent public offering of some 22+ million shares?  That has me puzzled.  More shares insn't necessarily good is it??

[AussieTrader]

Hey Dabbler yep normally more shares = dilution and then lower pricing (not for ever just reactionary). For TCX I think the move to ASE and all that surrounds that has offset negative sentiment over share dilution (they need certain financial targets share wise etc to meet ASE listing rules). TCX really shook the tree today and now sits on the 9ema having pulled back from the spikey high 4 sessions ago. A nice lower shadow on todays candle shows buyers were stronger and usually a 3/4 day lower vol pullback from a recent high (on volume) to the 9ema foretells a new upward move. Will see if Wednesday / Thursday action confirms this pattern.

[AussieTrader]

TCX consolidating on lower and lower vol. Looking for a support and bounce point, the close was not great, but I have seen these patterns bounce hard to test new highs. Watching to see how Friday plays out

[dhiraj19]

Hi Aussietrader,
Do you still hold this?
Thanks,
- Dhiraj

[david10773]

Iam considering positioning myself in TCX, prior to the earnings call on thursday. Can i get some other opinions on this, for further insight.

[david10773]

Lol iam tired, i meant to say after last weeks earnings statement, iam considering a position, what do you guys think.

[la-onda]

hello all,
feedback is appreciated, IMO this company is undervalued. Problem, very low volume
cheers Oliver

1)
TCX profile:
http://resellers.tucows.com/about/

2)
fact sheet:
http://resellers.tucows.com/about/investor/pdfs/factsheet_q3_2006.pdf

3)
Q3 results
Tucows reports strong third quarter fiscal 2006 results
Monday November 6, 4:31 pm ET
- Company Reports Strong Growth in Revenue and Profitability -

TORONTO, Nov. 6 /PRNewswire-FirstCall/ - Tucows Inc. (AMEX:TCX, TSX:TC), a leading provider of Internet services to web hosting companies, ISPs and other service providers worldwide, today reported its financial results for the third quarter of fiscal 2006 ended September 30, 2006.

"Our financial results for the third quarter of fiscal 2006 show increased momentum in our business driven by growth in all our service offerings," said Elliot Noss, President and Chief Executive Officer, Tucows Inc. "Operationally this quarter, we completed the bulk of integration of NetIdentity and acquired the Kiko calendaring service, further evidence of our commitment to having the best hosted email service in the world. In addition, we continued to invest in strengthening our operations. This will allow us to better capitalize on the significant leverage inherent in our business model."

Net revenue for the third quarter of fiscal 2006 increased 40% to $16.9 million from $12.1 million for the third quarter of fiscal 2005. The increase was the result of growth across all aspects of the Company's business.
Net income for the third quarter of fiscal 2006 was $1.9 million, or $0.03 per share, compared with $0.8 million, or $0.01 per share, for the third quarter of fiscal 2005. Adjusted EBITDA for the third quarter of fiscal 2006 increased 41% to $1.5 million, or 9.0% of net revenue, from $1.1 million, or 8.9% of net revenue, for the corresponding quarter of last year.

Deferred revenue at the end the third quarter of fiscal 2006 was $44.7 million, an increase of 20% from $37.3 million at the end of the third quarter of fiscal 2005 and an increase of 4% from $43.2 million at the end of the second quarter of fiscal 2006.

Cash, short-term investments and restricted cash at the end of the third quarter of fiscal 2006 decreased to $3.8 million from $7.0 million at the end of the second quarter of fiscal 2006 and $18.4 million at the end of the third quarter of fiscal 2005. The decrease compared to the end of the second quarter of fiscal 2006 is primarily the result of cash payments of $2.1 million to repay one of two promissory notes associated with the acquisition of Mailbank.com Inc. (NetIdentity) and investments of $0.8 million in property and equipment, mostly for Internet services infrastructure.

4)
Investment Highlights:

* Solid Position in the Domain Name Registration Market - Tucows is the second largest provider of domain name registrations in the world with more than 7.4 million domain names under management, more than 5.6 million directly and 1.8 million on behalf of other registrars.

* Large and Growing Distribution Channel - Since entering the domain name market in January 2000, Tucows has grown its distribution channel to more than 6,000 active resellers in more than 100 countries.

* Recognized and Trusted Brand - Tucows has established itself as a trusted name in the industry and has earned a solid reputation for providing exceptional levels of customer service and support.

* Serving the Expanding SME Market - Through its global distribution channel Tucows provides Internet services to more than 30-million end-users worldwide, primarily small-and-medium-sized enterprises (SMEs), one of the fastest growing segments of the Internet economy.

* Strong Financial Position - Tucows has a strong balance sheet, with $3.8 million in cash, and is consistently generating positive cash flow from operations, providing a solid foundation for future growth.

* At Leverage Point in Business Model - Tucows' business model provides a significant growth opportunity through the delivery of additional high-value added services to its customer base.

5)
yahoo quotation:
Nevertheless, if TCX is truly undervalued, what should be our target price? The following chart compares the valuation multiples of several industry leaders in fields in which TCX markets products and services. The stocks in this proposed basket may not serve as the best comparables because of the fact that each of these "competitors" boasts market capitalizations of 1.3B-2.3B dollars. However, many of TCX's direct competitors could not be used in this study because they have negative earnings. These negative earnings would have skewed the valuation multiples. So, for the purpose of this study, TCX is forced to compare itself solely to well-established entities and exponentially larger entities. TCX fared well despite this.

TCX Valuation by Multiples
Reference P/E P/S P/CF P/B
CNET 53.35 3.76 25.19 5.21
SINA 35.07 6.67 24.44 3.92
NSR 41.56 8.84 31.07 9.52
Industry 46.92 8.78 32.89 6.13
Averages 44.23 7.01 28.40 6.20
TCX 20.75 1.15 13.83 4.61

Price Multiple 2.13 6.10 2.05 1.34
Average Multiple 2.91
Current Mkt. Price 0.80
Targeted Price 2.33

The industry valuations was taken from the computer services numbers on Hoovers.com.
If you take the earnings per share, sales per share, cash flow per share, and book value per share of CNET, SINA, NSR, and the computer services industry in aggregate, they are trading at a multiple nearly three times higher than TCX.

While this is a quick and dirty approach to valuation, it should serve as another impetus to buy this stock. Please, instead of posting how you just sunk a boat load into TCX, please put your money where your mouth is. I did yesterday. This stock has solid fundamentals. You will not find another stock priced som modestly with sucg great potential upside and so little potential downside.

[poorman1]

Hello, I regularly enjoy your technical analysis.  Here's my feedback on valuation.  There is funny reclassifications going on on their balance sheet, which makes them unattractive.  The Net Tangible Assets turned negative over the past 2 quarters due to a large increase in Intangible Assets and Goodwill.  Stockholder equity increased, yes, however I believe a better metric to use is Net Tangible Assets and book value/share. 

Cash flow from operations looks very poor, as they have let their Accounts Payable increase $9.7MM, which negates their break-even profit. 

After looking at their 10Q, I see other income which will be non-reoccuring "In connection with the patents discussed above, during the nine months ended September 30, 2006, we received $2.3 million from the assignment of the patents. We do not expect to receive any additional revenue share from this arrangement in the future."

This is one of the only bright spots keeping them alive.

Sorry this is probably what you didn't want to hear, but hey, fundamentals don't always drive stock prices.   

[kslifka]

TCX up on news today.  Nice breakout today.  Small Market cap of $77 million.


Tucows introduces the next generation of Tucows Email Service
Wednesday May 23, 1:00 pm ET
Email service tailored specifically to the needs of web hosting companies and ISPs

TORONTO, May 23 /PRNewswire-FirstCall/ - Tucows Inc. (AMEX:TCX, TSX:TC), a leading provider of Internet services to web hosting companies and ISPs worldwide, has unveiled the next generation of its Tucows Email Service.

ADVERTISEMENT
The new hosted email service combines a brand new, AJAX-enabled webmail interface with backend architecture built from the ground up to provide exceptional reliability and performance.

"This latest generation of our email service demonstrates our commitment to help service providers offer highly-competitive services to their customers," said Elliot Noss, President and Chief Executive Officer, Tucows Inc. "For too long, service providers have viewed email as something they could get away with providing a low-end version of. The result has been too few customers actually using the service provider's email system. When you are selling hosting and domain names that is a dangerous place to be. The market has changed in the last 12-24 months and what was passable at the low-end is simply not good enough anymore."

The new webmail interface brings together desktop-like functionality and anytime, anywhere access. "Our vision is to make webmail something you want to use all the time, not just when you're away from your home computer," said Kim Phelan, Director of Product Management, Tucows Inc. "By providing competitive webmail along with full support for traditional email programs, we've ended up with an email service that works not only for users, but also for service providers. Our offering is reliable, fully featured and competitive email that will continue to evolve."

Leveraging technology from Nitido Inc., a Toronto-based leader in creating subscriber-centric services, the Tucows Email Service is able to provide a web mail experience that is comparable to the leading free and premium web mail providers.

"Working with Nitido we've been able to accelerate the delivery of our next-generation service while setting the stage for continuing innovation and additional services to come," said Noss.

"Tucows is leveraging Nitido's technology to bring world-class webmail to ISPs and web hosts", said Mauricio De Simone, Chief Executive Officer, Nitido Inc. "The combination of Tucows' reach, operational excellence and customer service alongside Nitido's product, technology and experience in large scale deployments, creates the single best option in the market today for a service provider looking to outsource its email operation."

    Features of the Tucows Email Service:

    -   New AJAX-enabled webmail interface features:
           -  Drag and drop folders
           -  Message preview pane
           -  Rich-text message compose
           -  Multimedia support with slideshows for photos and audio player
              for MP3 attachments
           -  Multi-language support (English, Spanish, French, Italian,
              German and Brazilian Portuguese)
           -  POP and IMAP are also available
    -   Tucows offers completely white-labeled webmail and includes an easy-
        to-use web-based branding tool so service providers can customize the
        webmail interface themselves.
    -   Our standard offering includes 2GB of storage per mailbox and allows
        for attachments of up to 20MB in size. For peace of mind, we offer a
        99.99% uptime guarantee.
    -   New diagnostic tools are available to our Tier II 24/7/365 Customer
        Support team to assist in resolving customer issues at first call.
    -   In-bound and out-bound spam and virus filtering are included.
    -   High-performance system built from the ground up with the goals of
        being scalable, reliable and capable of handling large numbers of
        mailboxes. Service runs on Xen virtual technology.

[setravis]

"TCX" Threads have been Merged.......
Please use the search before starting new threads on a Stock Pick.
Chances are a thread already exist.
So why not post whatever you have to comment about on that pick to that thread.
"Simplicity" My fellow traders.                                                       
All history on a stock pick in 1 thread is awesome.                                                         
Just trying to get threads together,so we don't have a numerous amount floating around on the same stock.                                                       
Thank You....and good luck with all your trades....make some $$$       

[Stocky2000]

 

[Stocky2000]

alltime high today 1.41  now at 1.28 good for loading up i think