Bpstech

[Zoolanda]

Hi All..

I am a long time reader first time poster.

Hard to find value in the market atm but one stock I came across is BPS TECH.

Basically the company owns the Bartercard Platform which allows businesses to exchange goods through a trading system that involves points. They also own a white label IT system (Tess) which allows other exchanges to function around the world and a rewards system called Bucqi.

In a nut shell these guys are ticket clippers looking at international expansion for growth. Historical industry growth is circa 15%

The company listed on the ASX last Sept and just announced they hit prospectus guidance.

Currently trading on a PE of 7 and a divvy yield 12% which seems very high.

Business has been operating for many years and has very stable revenues.

Merchants seem to have a love hate relationship with the company. If you don't put the effort into learning how to trade it can problematic but those that do seem to love it.

Anyhow just wondering if any others have looked at this stock?

Thanks.

ASX: BPS

[Joshuatree]

Hi Zoolanda; welcome; thanks for putting up anew stock. All i can say is i looked at Bartercard as a business awhile back and found the "love/hate/hate) relationship.Some merchants couldn't spend their credits and i believe one has to spend them or else! So they felt trapped in there.A few bigger merchants liked it but overall i got an unhappy feeling about it and wondered if there really was any growth in it.; just my thoughts and my mem is a bit hazy here.. Maybe its a good business to have though rather than "be in" and Bucqi looks int but I'm not motivated to look further atp. Cheers

[Joshuatree]

Well i did look a little further :confused:
Bartercard is the world’s largest trade exchange that has been operating for over 23 years with an annual trading value of over $600 million and a consistent track record of strong cash flow generation. As a global company, Bartercard has expanded through company owned operations and a franchise and license model. Bartercard currently operates through 75 offices across 7 countries - Australia, New Zealand, United Kingdom, United States of America, Thailand (Bangkok), UAE (Dubai) and Cyprus. The Bartercard model allows business owners around the globe to conduct business without the use of cash money. Businesses use Bartercard’s own digital currency as a way to conduct business that allows them to conserve cash as well as move excess stock, fill downtime and increase their customer base through the exclusive network of 54,000 cardholders across the 7 countries.

Investor briefing at Macquarie investors showcase (javascript:void(0);)

[Zoolanda]

The love/hate/hate worried me the most. But 60% of their merchants have been with the company for 5 plus years and 30% of that 10 plus years.

Also one third of revenues comes from each segment.....so it seems pretty balanced.

Revenues seem to be very stable especially in tough times when trading excess/obsolete stock maybe be beneficial.

[Zoolanda]

Another good announcement from BPS regarding Bucqi.

Hard to assess the value to the company but these guys continue to show the potential strength within their business.

Maybe a bit early but they haven't put a foot wrong yet.