260 percent up for the qtr ... golden

260 % qtr increase

This is yet another amazing result from this under valued company on the rise!

A recent fund manager report from Technical investing absolute return fund
Quoted
“TIARF first acquired some ISS stock in April 2007 @ $0.30. We have subsequently increased our holding and to date ISS is up over 50% on our investment. As at June 30 it represented 6.4% of our net asset value. It is now just starting to be noticed in the investment world”

They went on to explain what babelfish is , how it works , who has been buying it ….which those of us who have been watching already know ( and if your new to this thread this information is in the most recent announcement 29/07/08 )

TIARF also wrote the schlumberger deal up
“An important contract was signed in May 08 with Schlumberger, the world’s leading oilfields service provider with $US 23 Billion revenue in 2007. The contract gives Schlumberger exclusive marketing rights to Babelfish in the oil and gas industry and g’tees a min of $US15.5 mil revenue to ISS over several years – with potential for even higher revenues”

The appeal of ISS to us can be summarised thus

~ it has excellent revenue & profit outlook which seems achievable and realistic : Revenue from $9.3 m in 2006/07, to $17.7 m in 2007/08 and $21.8 in 2008/09 and profit for the three years of ; $0.9m , $3.6m and $5.8m;
~Substantial costs have been incurred through R&D and in establishing relationships and international offices.This past expenditure should give rise to future revenues and profits;
~ISS has an ability to maintain very high margins by providing low (marginal) cost software to secure annual revenue streams;
~The business has growing base of annuity –styled earning through it’s maintenance agreements;
~It has a business model, as shown with the schlumberger deal, which is scaleable and allows for fast rollout of it’s software;
~ ISS is a small market capitalised business which has the potential to provide substantial increases in value over the coming years;
~We have met the directors of the company and feel confident in their ability. Management own a large percentage of the company;
~ ISS has commenced paying dividends and should have the cash –flow to allow for an increasing annual dividend.

We currently hold very few industrial companies. Many have contracting margins and in industries where things are tough. Whilist ISS is not well known at present in the investment community it is this current environment that could allow ISS to stand out, if it continues to deliver. Businesses that can continue to show strong growth and profits in this environment can see their share prices be substantially re-rated upwards as others are failing.

Pretty good wrap up I thought and the announcement out today with the qtrly result is further indication that this company needs to be on everyones watch list ..
As I have said previously on this thread ‘BUY NOW OR DIE WONDERING”