Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
Key Points:
· A meeting with management left us exceptionally positive about this
company's prospects for the first time in a long while. Transaction
volumes are at record levels and we expect could exceed 20 million, up
from 7 million in the year ago period.
· Revenue per transaction is rising to nearly $0.04 / transaction
(average) – noting new service introductions that capture up to $0.30
per transaction.
· Credit card transaction processing appears poised to generate the
majority of service revenues in the current quarter – for the first time
ever!
· Merchant sign-ups, up 3,000, setting records at the end of 3Q with
16,000, remain strong, adding 1,000-1,100 per month despite a seasonally
weak period!
· CYCH management is rationalizing products, services and people,
eliminating elements that no longer fit the company's strategy or market
opportunity;
· We expect operating cash flow positive by year-end, 2001. We fully
expect the company to rescind the shelf-filing, and to be self-sufficient
from a capital infusion perspective over the coming 3-4
quarters.
· We believe CYCH shares could support a valuation of 15x revenues
suggesting a 12-month price target of $17 per share.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.