Our New Pick Is: MTSL - MER Telemanagement Solutions
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MTSL has a last price of 1.55 a share and a market cap of a bit over 7M, which believe it or not, is very tiny for a company trading on the Nasdaq.
MTLS has shown that it can be a big mover as well, running as much as 50% in one session just a few months ago.
MTSL has been showing solid revenues for years now, bringing in over 13M in 2012, 12.4M in 2013, and just over 7M in 2014.
Revenues were down a bit last year but don’t count this company out yet, they have just finalized an acquisition that will provide earnout payments of up to 16M over 5.5 years from the closing date based on the earnings of the newly acquired company.
MTSL has just recently finalized its acquisition of Vexigo Ltd, a privately-held Israeli-based software company supporting video advertising over the internet and mobile devices.
Vexigo will now operate as a wholly-owned subsidiary of MTS and its results will be consolidated in the financial statements of MTS as of April 1, 2015.
This is a huge move for MTSL and is sure to increase shareholder value!The additional revenues will start showing up in the financials which should cause the share price to increase.
"We are excited about this acquisition, which we believe will benefit our customers, partners, employees and shareholders," said Lior Salansky, CEO of MTS. "With this acquisition, we believe that we will have the scale and resources to expand our market position."
"This transaction is in line with our business objectives and it is an important step in carrying out our strategy to enhance our business and increase shareholder value by making accretive acquisitions and entering into new business areas," said Mr. Chaim Mer, Chairman of the Board of the Company. "We welcome Tzvika Friedman and Adi Orzel to our board of directors," added Mr. Mer.
MTSL provides telecommunications expense management (TEM) solutions for enterprises, and billing solutions for information and telecommunication service providers worldwide. It operates in two segments, Enterprise and Service Providers.The company offers TEM suite that assists organizations in reducing their telecom spending, managing their telecom assets, billing internal and external customers, monitoring the quality of service of their telecom networks, fraud detection, and processing of payments. It also provides TEM Services, which comprise Map-to-Win, a strategic consulting approach for TEM solution; and consulting services, including invoice and inventory audit and recovery, contract negotiations and strategic sourcing, discovery and road mapping, process diagnosis and solution design, and wireless optimization services, as well as creation and implementation of IT governance, risk, and compliance policies. In addition, the company offers converged billing solutions that include applications for charging and invoicing customers, interconnect billing, and partner revenue management through pre-pay and post-pay schemes for wireless providers, voice over Internet protocol, Internet protocol television, mobile virtual network operators (MVNO), and content service providers. Its mobile virtual network enabler solution allow MVNOs to reduce their time to market; and mobile money solution allow MVNOs to offer their customers the ability to make deposits, withdrawals, person-to-person transfers, bill payments, purchases of goods, and banking services over mobile phones. Further, the company offers cloud and managed services, as well as implementation and maintenance services. Mer Telemanagement Solutions Ltd. markets its products through original equipment manufacturer distribution channels, direct sales force, and distributors.
We believe that the future is looking bright for MTSL, both short and long term,
Good Luck!
-Prime Time
