Transaction Systems Architects: Facilitating electronic commerce


As the world's payment systems shift from paper to pulse, world commerce becomes increasingly dependent on the reliability and integrity of transaction software specialists. Among the leaders in the field is a New York firm that has been serving financial clients for almost thirty years.

Transaction Systems Architects (NASDAQ: TSAI) sells software products and services that make electronic payments possible. The programs process transactions involving ATMs, credit cards, debit cards, wire transfers, home banking services and point-of-sale terminals. Company services involve design, implementation and facilities management. Customers include financial institutions, retailers and e-payment processors. Bank of America (NYSE: BAC) and BB & T Corporation (NYSE: BBT) are two of the big names on the firm's client list. First Data Corporation (NYSE: FDC) is a major competitor.

The company updated its 2007 estimates last month, predicting adjusted EPS of $1.51-$1.80 and revenues of $428-$447 million. Those ranges encompassed the consensus Street views of $1.66 and $436 million. The news helped to keep TSAI shares cycling through a positive seven-week trading channel. The price is currently consolidating at the base of that channel, where oversold Momentum, Stochastic, CCI and MACD technical parameters suggest the potential for a rise back toward the top. The approximate correspondence of the stock's 50-day moving average to the base of the channel backs the rebound notion.

Brokers recommend the issue with four "strong buys," one "buy" and one "hold." Analysts see a 49% growth rate, through the next year. The TSAI PEG ratio (1.2), Price to Free Cash Flow ratio (22.89), Return on Assets (12.33%) and Return on Equity (22.85%) compare favorably with industry, sector and S&P 500 averages.

Institutions hold about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $28.10 and $38.72. A stop-loss of $29.00 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

Symbol Lookup
IndexesChangePrice
DJIA+50.9012,852.13
NASDAQ+18.852,922.73
S&P 500+5.981,348.62

Last updated: February 13, 2012: 11:44 AM

Hot Stocks

General Electric

19.035+0.16(+0.85)

Alcoa

10.36+0.07(+0.68)

Apple Inc

499.60+6.18(+1.25)

Google Inc 'A'

612.285+6.375(+1.05)

Bank of America

8.265+0.195(+2.42)

Wal-Mart Stores

61.98+0.08(+0.13)

Exxon Mobil Corp

84.17+0.37(+0.44)

Ford

12.52+0.08(+0.64)

Citigroup

33.425+0.50(+1.52)

IBM

192.41-0.01(-0.01)

Yahoo

16.095-0.045(-0.28)

Starbucks

49.19+0.37(+0.76)

Microsoft

30.50+0.005(+0.02)

Home Depot

45.81+0.48(+1.06)

DailyFinance Headlines

Benzinga Headlines

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

DailyFinance BlackBerry App

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

BioHealth Investor Headlines

Page Loaded in 1329151483717 ms.