This stock has more than doubled in past year – and it's still rated a 'buy'
Summary
Tio Networks Corp., a little-known cloud-based bill payment company from Vancouver, is gaining increased attention after doubling its market value over the last six months and beating analyst estimates in its past two quarters. Much of the gain has been since July when Tio announced the $31-million (U.S.) purchase of consumer retail bill payment company Softgate Systems Inc., beefing up its presence in the northeastern United States. If the Softgate deal closes in the new year as anticipated, the TSX Venture exchange-listed company is also expected to seek a listing on the main Toronto market, which could draw even more investor interest. Analysts say the main risks for Tio investors include fluctuations in the Canadian dollar and any hiccups with the integration of new companies like Softgate, as well as the loss of major customers. "We believe Tio has built a scalable, multichannel platform that when combined with its low capital expenditures should allow the company to increase its incremental revenue and margins while keeping operating expenses in check," said Mr. Sangha, who has a $2.30 target on the stock.