The range of Batrovic’s coverage universe was on display as he offered opinions on one of Canada’s very largest techs, CGI Group, which he think is overvalued following the acquisition of Logica, and tiny Espial (TSX:ESP), which he thinks is undervalued.
While most everyone knows CGI Group, says Batrovic, hardly anyone knows of Ottawa-based IPTV television software provider Espial. That, more than anything, offers the 4Front Capital analyst, is the reason the stock has languished.
But Batrovic says Espial occupies a potentially valuable space, helping carriers move away from a passive legacy brand of TV towards more modern, interactive offerings. He says the company is growing, has a good stable of customers, and has growth catalysts on the horizon. Batrovic currently has a $1 target on Espial.
This story is brought to you by Serenic (TSXV:SER). Serenic’s cash position as of May 31st, 2012, $4.45-million, was greater than its market cap as of September 6th, which was $3.86-million. The company has zero long-term debt. Click here for more info.
Shares of Espial have pulled back after a move late in August. The company spiked after it announced a deal with Panasonic to preintegrate the company’s TV browser on Panasonic Corp.’s semiconductor business group chipset technology. The deal with Panasonic was the second major announcement the company has made this summer. In June, it announced that the Espial TV browser has been selected to power new Sharp Aquos LED TVs in Japan, China and North America.
Despite record annual revenue of $14.7-million for fiscal 2011, Espial has spent most of its existence in the red. The $2.5-million, or eighteen cents a share the company was down last year, however, will likely be trimmed considerably this year as 2012′s first half loss was just over $658,000.
Shares of Espial closed today even at $.51 cents.