It was getting late in the session and I was scrounging around (? is that a word) the list of Most Up stocks on CNN.Money....I did see Krispy Kreme and Christopher and Banks...but we have already posted those picks....when I came across Online Resources Corp.
Yikes ANOTHER dot-com! But before you walk away from this one let's take a look at the numbers. Can numbers ever lie? Of course not...but what about accountants??? We won't go there.
Online Resources Corp "is a provider of e-financial services that enable regional and community financial institutions to provide Internet and other online banking services to their retail customers." (per CNN.Money)
On April 22, 2003, ORCC reported financial and operating results for the three months ending March 31, 2003: Revenues were $11.0 million an increase of 41% over first quarter revenues 2002 of $7.0 million. Profits were $7.2 million compared to $3.9 million last year. Net income was $2.1 million compared to a loss of $807,000 last year...or $.15/share compared to $(.06)/share in 2002.
Morningstar.com shows sequential growth in revenue from $2.9 million in 1997, $4.3 million in 1998, $8.4 million in 1999, $15.6 million in 2000, $24.6 million in 2001, and $32 million in 2002. Isn't that pretty! Extrapolating the present quarter we would get $44 million in 2003 without any growth.
Cash flow which has been negative at -$20 million in 2000, -$11 million in 2001, $-1 million in 2002, but POSITIVE $2 million for the trailing twelve months.
The company appears reasonably solvent with $4.0 million in cash on hand along with $10.4 million of other current assets compared to $3.3 million in current liabilities and $12.4 million in long-term debt.
This is a TINY company with a market cap of $75.5 million and only 13.7 million shares of which only 5.10 million float. The company trades at a p/e of 30.73 which although apparently steep isn't too bad considering they are just NOW turning profitable.
I like this company a lot....and if I find some cash somewhere may buy a few shares! Have a great weekend. Regards, Bob
P.S. (6/29/03....looks like I didn't write the stock price at the time of this entry....ORCC closed at $6.17 on the day (6/27/03) up $.67 or 12.18% on the day. We will use this price as our pick price.)