Dick Davis Digest Volume 26 Issue 614 January 14, 2008
Clipping Featuring International Card Establishment Inc.
"International Card Establishment: Inc. (ICRD.OB 0.15 OTC BB) is in the business of building merchant card portfolios and is rapidly expanding into the gift and loyalty card market as well. Gift cards you know about - most of you probably purchased them as gifts over the holidays. As for the merchant banking division, this simply means that the company enables small to medium sized businesses accept customer credit cards and assists with the processing, reporting, etc."
"The card business was completely restructured throughout 2007. Salaries were slashed, stock options were cancelled, high risk customers were terminated, unprofitable divisions were sold. All told, operating costs and general and administrative expenses-were reduced by $1.97 milliori in the first three quarters ... a remarkable savings for a company with a market capitalization of just $4.58 million. The maneuvers also left the company with just $200,000 in short-term debt, no long-term and ready access to a $2 million credit line."
"In mid-November when International Card Establishment reported its 9-month results, losses came in at $0.03 per share compared to $0.12 for the same period in 2006. Fourth quarter results will show a further improvement still and the company has puplicy stated it will achieve sustainable profitability in 2008 probably before the end of the first quarter. The wonderful wild card in all of this centers on its proprietary gift card technology that employs a 'smart chip' instead of a magnetic strip. Even a small success in this area could boost revenues from $9 million to over $20 million in short order. Now that tax selling is over, International Card Establishment should quickly rebound from it's present price and easily return to last year's high of $0.26. Buy the shares of International Card Establishment."
The Growth Stock Advantage of Serious Investors
