Friday, April 15, 2011

* * * NISC: New Product, Recent Acquisition, New Funding, and a New (much higher) Price Target * * *

NISC is our "Sleeper" Pick of the Week...
You Might Not Hear Their Name in Every Conversation, But the Company Recently Completed a Multi-Million Dollar Financial Services Product Launch and Acquired a Fully-Operating Financial Services Firm.  Add That to the Fact That They're Currently Operating in a $90B/yr Industry, They Recently Signed a Deal Worth Over $6M in Additional Funding, and Received an Independent Cohen Price Target of $.69 from Grass Roots Research.

NISC IS ON FIRE!  With its Current Price Already Down Slightly on the Open, This Could be One of the Most Under valued Companies on the Market Right Now!

It doesn't take a brilliant technical analyst to understand why we support the recent "BUY" recommendation from Grass Roots Research and Distribution(http://grassrootsrd.com/grassrootsrd/Reports/NIS_Holdings_04_05_2011.pdf).  However, we'll point out some interesting facts that give us that "warm fuzzy" feeling about the company.
First, some background on the company itself.  NIS Holdings, Inc. (also referred to as “the Company”) is a holding company registered in Reno, Nevada and headquartered in New York City.  The Company specializes in the acquisition of firms in profitable markets with high-potential and capable of achieving sustainable growth.  NIS Holdings provides professional support for its consolidated subsidiaries including experienced operations managers, senior level executive leaders, and financial specialists. Through experienced strategic assessment and proven execution strategies, NIS Holdings can produce measurable results by harnessing the extensive expertise of its international management team.  NIS Holdings’ initial investment ventures in emerging consumer loyalty technologies (Alpha Dynamic Group, Inc.) with more cuttingedge solution providers to follow.
NISC is targeting three key business sectors: Cash-back loyalty cards, Consumer/Retail Gift cards and Business Consulting (more a side-effect of its other ventures, really).  One interesting piece of information that hasn't made its way into the public eye yet is that the Company is raising $6.0 million in funding of which $3.5 million will be for Alpha Dynamic, $1.5 million for Alpha Card Technology and $1.0 million for its working capital.  The funding will allow for a renewed focus on the core operations of the various companies involved, as well as a renewed focus on growth andyet another potential spike in near-term share price as well!

There are Numerous Market Factors Likely to Drive NISC Subsidiary Alpha Dynamic Group's Rapid and Substantial Growth
According to Visa, reward and cash-back cards make up more than half of all credit cards and represent 80% of money spent on credit cards. According to Mintel, among these cards, cash-back credit cards accounted for 41% of all rewards offers in 2010. According to comScore, 60% of Americans have a rewards credit card. Switching of cards depends upon better rewards available. Around 68% of Americans said that cash back would be most influential in getting them to switch.  With Americans spending nearly $90 BILLION annually on credit cards, that 68% of the market suddenly becomes a big deal!
Membership loyalty programs are marketing initiatives to retain and reward customers. From 2006 to 2008, US loyalty program memberships increased from 1.3 billion to 1.8 billion, an adjusted growth rate of nearly 25%. This number translates into 14.1 loyalty  program memberships per US household.
According to the Chief Marketing Officer Council, 80% of marketers recommend using customer loyalty programs to retain customers and build relationships. In addition, a Boston University survey found that roughly 86% of American shoppers use some form of store card or discount card. The demographics were further broken down and it was discovered that roughly 63% of women and 54% of men in the United States carry store reward cards for regular (daily) use. Alpha Dynamic, NISC's recent acquisition, provides the Payback Cash Card that assists retailers with establishing and maintaining or simply improving their existing loyalty programs. The Payback cash card will provide a processing platform that works with multiple types of transactions.
Due in part to economical drivers as well as its existing momentum, the gift card industry has experienced strong growth in the past with sales nearing $80 billion in 2006. The industry witnessed a slump in 2007-2009 due to global recession, however, gained back its pace to reach $91 billion sales in 2010. Experts predict sales to continue to grow as the economy recovers. Industries revenues are anticipated to reach $100 billion by next year.Industry experts expect incentive and loyalty cards to grow at a compound annual growth rate of 39% from 2011-2015. Currently, the US has 1.8 billion loyalty club memberships and 129 million members in loyalty programs, which make it a $2 billion market. An average US household is enrolled in 14.1 loyalty programs representing the significant market opportunity available to NIS.
The Grass Roots Report Boldly Projects $50M Income in 2015 for NISC Subsidiary Alpha Dynamic, Pointing Out That Revenue from Alpha Cards is Estimated to Reach $1.2M This Year Alone, and Increasing to Over $5M Itself in 2015!

One Sure Thing is That NISC Will be Catching the Attention of a Lot More People, and With an Amazing Story Like This, We Could See Some Significant Increases in the VERY Near-Term.  Don't Get Caught Sleeping, Especially When All The Signs Are Right Here, and They All Point To Big Things!

No comments: