This is a profitable, value stock that trades below $1. The business model has over 20,000 member establishments. This cashless transaction system accounts for more than $250 million of business. The management has covered small and medium enterprises in the United States until now. However, the stock has inherent value from the extension of the model to large corporations, individuals, and other parts of the world as well.
A network of business associates for cashless transactions has multiple enterprise benefits. The most upfront advantage is to free business growth from any restraint of cash holdings. Secondly, it is also a cost-effective mode for operations. The network can help a manufacturer or service provider build a moat to keep competitors away from key clients. Cashless transactions can be viewed as a form of horizontal integration. Finally, an important business benefit for network members is the opening of doors to new customers and suppliers. Subscribers can use the company’s resources to find fresh lines of demand, to enter new market segments, and even to entertain business accounts in unfamiliar towns.
The company’s creative business model is supported by an effective management system. The company earns revenues from association fees as well as percentages of all transactions. Operating costs are tightly controlled. The management has also made intelligent acquisitions. That is why the stock performs steadily both in terms of profits and growth. The Trailing Twelve Months Net Profit Margin is nearly 30%. Return on Average Equity has been 41.66% during this period.
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