This is a very specialized software niche, with ESV software applications sitting on 75 telco networks globally. The company is benefiting from the convergence in pre-paid and post paid billing systems, as well as the long awaited pick-up in global telco spending.
The company acquired a French competitor ‘Ferma SA’ in November 2005, only to follow this with 2 earnings downgrades in December 2005 and February 2006. This has provided a potential good buying opportunity, with the shares trading at a discount even after the recent increase from 60's to mid 70's.
It looks promising that ESV will re-install some confidence with its 1st half 2007 result, as well as demonstrate robust cash-flow generation, and the share price will IMO be re-rated accordingly with >$1 a distinct possibility within months.
ESV Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
