The Australian, Friday, 13 March 2009
STOCKS plumbing the 4c level exude an antiseptic aroma of death usually reserved for mortuaries and dentists' waiting rooms, especially when they don't trade for days on end. But this purveyor of portable payment systems (PPS) is turning the profitability corner as it sells portable payment devices to itinerant workforces such as salespeople and handymen. While this is not new -- banks are in the game as well -- Mint's software is compatible with Microsoft Windows and BlackBerry. The payments are also downloadable to bookkeeping programs such as MYOB and QuickBooks. "We don't have any direct competition as we know it," says Mint chief Alex Teoh.
Mint sells directly, as well as through Optus Crazy John's, which bundles the offerings into mobile deals. Mint recently won a three-year contract to license 100 Cadbury-Schweppes delivery drivers to use the software. Mint recorded a December-half net loss of $933,000, a 44 per cent improvement, while revenue surged 91 per cent to $6.1million. But in the December quarter, Mint recorded a $1.44million cash surplus compared with a previous $2.32million loss.
Teoh says small businesses are keen on quick sales. "In this market, people are very concerned about cash flows," he says. "We believe we have the right technology and an excellent platform."As at December 30, Mint was sitting on a cash balance of $1.65million and a largely unused $2 million facility. Mint has a $2.1 million market cap, with a further 110 million shares coming out of escrow in August. One Criterion reader believed Mint -- which listed in August 2007 at 20c apiece -- to be a "dead duck". "What's most interesting is the company's line of credit," he says. "The backers think they have a promising outlook in tough times."Criterion will discard his wariness about technology stocks and rate Mint a speculative buy. The lack of liquidity makes for a Hotel California scenario: you can check in any time but you can never leave. |
