NEW YORK, Aug. 18, 2004 (PRIMEZONE) -- The following is an investment opinion issued by Investrend Research Syndicate:
International Card Establishment (OTCBB:ICRD) has been rated 'Speculative / 3' by Investrend Research analyst Bobby Shethia, MBA, in an initiating Criterion Report.
Shethia said that International Card is on track to acquire NEOS, a fast growing Gift & Loyalty smart card company for about $7.5 million in cash and stock. "The company's strategy closely follows that of iPayment, Inc. (Nasdaq:IPMT), which sells for 2x04 revenues and Innovative Merchant Solutions, which was acquired by Intuit (Nasdaq:INTU) for $116 million for its $25 million trailing revenues," he stated, noting that the acquisition will be at 3.5x trailing 03 revenues and about 1x04 revenues.
The analyst said the NEOS takeover, bundling of leasing products and services, portability of bank card services and higher revenues from its leasing portfolio could propel International Card Establishment into the ranks of serious players in the Bank Card Services business.
International Card, which sells for a low 1.17x 2004 estimated revenues, according to Shethia, expects to grow by acquiring companies in the small and medium size Merchant Services market. It sees opportunity in the fragmented segment, where it hopes to scoop up small companies at low valuations.
Amongst concerns and challenges Shethia concludes that while International Card has been successful in using its stock for acquiring companies so far, it would need funding on a continuous basis to grow and would have to be very careful about not overpaying for target companies.
The full report, including important disclosures and disclaimers, is available at http://www.investrendresearch.com, and at the company's InvestorPower page at http://www.investrend.com/company/list.asp?sPathParam=yes and investors are advised to read those disclosures carefully before trading in the equities of any enrolled company.
The analyst's credentials are at http://www.investrend.com/articles/secondlevel.asp?level=238
International Card Establishment is enrolled in Investrend Research's pioneering professional research program, which facilitates independent analysts to provide financial coverage for shareholders in companies that otherwise, would have little or no analyst following. Enrollment fees for Criterion coverage is $8,940 and the fees were paid by the company. Analysts are paid in advance of initial reports by Investrend Research to eliminate pecuniary interest, and neither the analyst nor anyone associated with Investrend Research may own or trade in the stocks of a company under coverage.
Anyone interested in receiving alerts regarding ICE research should email contact@investrend.com with "ICRD" in the subject line.