Cheap Stocks

We focus on undervalued small-cap stocks. Usually with a large cash cushion. We have developed a valuation formula that has been highly successful, especially on small tech stocks. Since 2006, we have closed out 49 stock positions with an average gain of 37%. 9 stocks have been taken over.

Tuesday, May 17, 2011

BUY MTSL @ $1.50

MER Telemanagement Soltions Ltd (NASDQ-MTSL)Valuation-$5.11
Price May 17, 2011-$1.50

We have watched MER for a long time. Trading in it is “thin” and their financial results have been boring. However, the same could be said about PRM and another Israeli stock that I bought personally, but unfortunately did not recommend on this blog-Top Image Systems (NASDAQ-TISA) which recently spiked from $1.30 to $2.30 in a day after a decent earnings report.

MER’s recent quarter (March 31) was positive, they made $.04 per share. Revenues were up about 11% and they had $.60 a share in cash. They only have about 4.5 million shares outstanding.

MER stock price was as high as $2 as recently as early April and was over $3 in December of 2010 on huge volume.

This will likely be very boring—until it’s not.

Average trading volume is about 25,000 shares a day, so patience on building a position is required.

About MERMer Telemanagement Solutions Ltd. (MTS) is a worldwide provider of innovative solutions for comprehensive telecommunications expense management (TEM) used by enterprises, and for business support systems (BSS) used by information and telecommunication service providers.
Since 1984, MTS Telecommunications' expense management solutions have been used by thousands of enterprises and organizations to ensure that their telecommunication services are acquired, provisioned, and invoiced correctly. In addition, the MTS's Application Suite has provided customers with a unified view of telecommunication usage, proactive budget control, personal call management, employee cost awareness and more.
AnchorPoint TEM solutions enable enterprises to gain visibility and control of strategic assets that drive key business processes and crucial competitive advantage. The AnchorPoint's software, consulting and managed services solutions -- including integrated Invoice, Asset, and Usage Management and Business Analytics tools -- provide professionals at every level of the organization with rapid access to concise, actionable data.
MTS's solutions for Information and Telecommunication Service Providers are used worldwide by wireless and wireline service providers for interconnect billing, partner revenue management and for charging and invoicing their customers. MTS has pre-configured solutions to support emerging carriers of focused solutions (e.g. IPTV, VoIP, WiMAX, MVNO) to rapidly install a full-featured and scaleable solution.
Headquartered in Israel, MTS markets its solutions through wholly owned subsidiaries in the United States, Hong Kong and The Netherlands as well as through OEM partnerships with Siemens, Phillips, NEC and other vendors.

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