Intrinsync Software is one of the new junior techs

   

This is  a blog about a company not previously covered in Workathon- Intrinsync Software.Although it has been mentioned in a blog analysing Tucows on 09/03/2015 called Four Small Cap Technology Stocks.This is one of a number of  junior technology companies that has taken a different path to growth.It started with a number of products that were not going to be pathfinders nor groundbreakers.The technology and the products were only slightly profitable.But  this stable of products was well managed  and so it brought in new staff and had some money  left for investment.And so it made some investments in other junior technology companies.This became the start of a new and growing and more successful company.
        The Basic Data
 Intrinsync Software was priced in the $.40 area from January,2012 to about June 2105.Then it moved into the $.75 price range.It still only has total assets of about $15 million but it is typical of software companies to have few assets.More importantly it has a market capitalization of about $25 million and earnings per share of $.09 combined with a price/earnings ratio of 13 times.These are pretty good numbers for a software company some of which can have quite large P/E ratios.It is not unusual to see a P/E ratio of 20 to 25 times;this would give ITC a price of $1.75 to $2.00 per share.This gives investors a snapshot of where they are now but not where they are going.
             Small Cap Startups
    ITC has a program to acquire small cap technology companies with little good will (or negative good will) and interesting new technologies.Some of the companies ITC has acquired include Global Relay,Spry Logistics and now taking a position in Payfirma.It may also have small positions in Neulion and D-Box Technology.It's earnings are not great but it has only 20 million shares outstanding.So it still has some equity  to buy other startups.Overtime they will combine these separate parts into a new and different operation.That is slowly taking shape.
                                       

      Conclusion
      Intrinsync Software is a junior technology company;now it has parts of several other junior technology companies.It will need to take greater positions in all of it's subsidiaries and combine the operations gradually.This will require more equity and more debt so the acquisitions must be prudent.But the new ITC will become a small technological operating company producing a few special products.It is not there yet but it is on it's way.This blog believes that a P/E ratio of 13 is light for a company with this kind of potential.                 see Workathon for prediction on growth of ITC ;  get stories on Cdn. junior tech companies on Workathon.blogger.com