Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, July 29, 2011

Article Excerpt

ACI WORLDWIDE, $36.17, symbol ACIW on Nasdaq, makes software used to process transactions involving credit cards, debit cards, automated teller machines, point-of-sale terminals and interbank payments. In March 2011, ACI bought ICD Corp. for an undisclosed amount. ICD has over 140 customers who use its software to authorize credit- and debit-card transactions through over 70 different payment processors, including banks and credit-card companies. ACI’s revenue rose 22.7% in the three months ended June 30, 2011, to $113.4 million from $92.4 million a year earlier. The company earned $9.8 million, or $0.29 a share, compared to a loss of $150,000, or nil per share, a year earlier. The company holds cash of $170.8 million, or $4.98 a share. The stock has risen 90.4% for us over the last year. It now trades at 29.9 times the $1.21 a share that ACI should earn in 2011. However, that’s not unreasonable given the company’s strong growth prospects. As well, ACI announced this week that it will…