CSG: Forgotten Small-Cap PlaySeeking Alpha

CSG: Forgotten Small-Cap PlaySeeking Alpha

November 22, 2018 0 By NewsTakers

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I personally like to buy stocks, that have a leading position in their market segment as they usually enhance great value to its shareholders.
Cloud solutions revenues continued to grow and were $187.4 million, and managed services offerings revenues were $13.3 million compared to $157.9 million and $15.9 million for the second quarter of 2017.
The Y-o-Y increase in revenues can be primarily attributed to the acquisition of Business Ink on February 28, 2018, which generated approximately $16 million of revenue for the second quarter of 2018.
The company has reported during Q2 earnings call, that revenue from Ascendon SaaS-based cloud platform continue to grow in double digits year over year, but without reported numbers.
I believe CSGS is positioned well and has a huge potential to take a pile of this double-digit growing market and drive its cloud services revenue growth by the Ascendon platform.
This year they started being active again in M&A deals and on February 28, 2018, it has acquired Business Ink, a leading provider of business communications for little over one-time historical revenue or $70 million in Cash.
This is really important factor, as they have enough cash on hand, so they can use it to focus on driving long-term shareholder value, which I find a key trigger to buy a stock.
On October 2, 2018 company announced another acquisition of Forte Payment Systems, a leading provider of advanced payment solutions.
The Ascendon platform has a huge potential of a further product integration and monetization on its platform, helping the Company expanding its market reach in different segments like IoT market.

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