TSS, Inc. (TSSI) is a single source provider of mission-critical planning, design, system integration, and deployment of data centers facilities and information infrastructure, suggests small cap expert Faris Sleem, editor of The Bowser Report.
TSS specializes in customizable end-to-end solutions powered by industry experts and innovative services. Both earnings and revenues have soared over the past year, yet its market value has decreased.
In its most recent quarter, the company reported revenue growth of 397% as well as a big jump in net income. Because of its rapid growth and undervaluation, the stock is trading at just 20% of its annual sales.
Insiders currently hold 43% of the outstanding shares and have purchased 780,000 shares over the past year. Additionally, institutional investors account for 10% of the outstanding shares, which is rare for a stock trading at such low price.
The major insider ownership is even more reassuring considering management’s track record. Both CEO Anthony Angelini and CFO John Penver have over 25 years of experience in their respective fields.
Angelini last served as CEO of Zomax, Inc., a Nasdaq-listed company in the business process outsourcing industry. Zomax was recognized by Fortune and Forbes as one of the fastest growing small companies.
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Overall, TSSI is undervalued and has outstanding leadership. As long as insiders and institutional investors continue to accumulate, market value should start to normalize. The consistent sales growth alone makes it a bargain at its current price and we expect big things down the road.
Altigen Communications (ATGN) — our Top Pick from 2020 — rose 70% last year. The company is a leading Microsoft Cloud Solutions. Although the stock has doubled within the past year, its integration with Microsoft Teams makes ATGN a potential high growth investment opportunity.
Altigen has reported consistent top and bottom-line growth as the market for cloud solutions continues to skyrocket. The surge in demand for cloud services is not temporary and the industry is expected to grow at a CAGR of 24%. The stock is still within buying range as long as it maintains sustainable growth and captures more market share.
