Monday, February 18, 2013

XRSC - Hot MRM Play Set to Triple in 2013 !!!

XRS Corporation (XRSC) (previously XATA) is emerging in 2013 as the industry leading Mobile Resource Management (MRM) company with CalAmp Corp. (CAMP) and Sierra Wireless Inc. (SWIR) the top two providers in the M2M/MRM space. XRSC connects companies to their mobile assets and workforce through game changing information platforms, giving them the power to manage actionable business intelligence. Its trusted brands include XataNet and Xata Turnpike solutions, which are both SaaS solutions for which customers pay a per-subscriber monthly fee. This fee entitles them to access their fleet data at any time via the Internet. MobileMax is a customer-hosted solution whose software revenue is derived from monthly per-truck service fees. In addition to the solutions discussed above, Xata offers an array of professional IT and consulting services, including solution installation and implementation, driver and back-office training, bestpractice-operations consulting and custom report building.

Click this link to Read more about XRSC's Fleet Management Service

Annual MRM revunes are expected to grow from approximately $240M to $2.3 Billion in 2016. XRSC is  converting its simple track and map basic subscribers to a customer base that utilizes its 3 packaging tiers (Entry Level, Mid-Tier, and Top-Tier Package) which has richest set of capabilities including wireless timecards, dispatch, data capture etc...Considering the huge market potential I think XRSC has very high chances to excel in 2013 and beyond.

XRSC is an unknown MRM/M2M play until I explored and tweeted @IncredibleTrade at $1.50. It closed at $1.70 on 5 times 3 month above average volume. In fact the stock rose from .70 to $1.70 in a matter of 3 days and topped out there. It then dropped to $1.50 before closing at $1.70 last Friday.

Key Stats, 2013 Numbers, and Chart

XRSC is a small float play with a market cap of $18M !!!..Yes we LOVE small and micro cap plays...always!!! Outstanding shares is 10.8 Million and Float is 7.6 Million shares, click here for more Key Stats

XRSC reported non-GAAP earnings of $2.2 million, or $0.08 per diluted share for the first quarter of fiscal 2013, compared to non-GAAP earnings of $0.5 million, or $0.02 per diluted share, for the same period in fiscal 2012, an increase of $1.7 million. The increase in non-GAAP earnings is a reflection of improved margins and a reduced cost structure. Click here for the full Q1 report.

A robust chart is in the process of formation, which tells the stock is going to rip higher with huge momentum, accumulation, consolidation and breakouts - Friday's close is above its 4 EMA and RSI is at 80 which tells it has not topped out yet. Some stocks remain strong with RSI between 70 to 90 before they top out. Click here...

Bullish Comments from CEO - "We are pleased with the first quarter financial performance. We are also encouraged by the progress we are making in the testing of our new XRS mobile platform which is now in its beta phase," said Jay Coughlan, chairman, president and CEO of XRS Corporation. "Customers are eager to begin using the XRS solution, and we anticipate rollout of this new mobile solution in the spring of 2013."

Disclosure: I am predicting this stock to hit $6-$7 in the the next 7-8 months and my short term target is $4-$5. I am long XRSC at $1.70. I might add more shares or unload entire position or partial position depending on the market trend.

A general Caution and Advise - As I always advise in my posts, Do not chase stocks. please keep in mind that I am not a Stock Market Analyst or an Investment Adviser to count on my recommendations/alerts. As always please do your DD before investing or speculating, start with a small position, always keep your stop losses in place and emotions out. Finally thank me for your profits but do not blame me for your losses because you are the one who pulled the trigger!!!

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Who is Mr.Incredible?

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Mr.Incredible is a Momentum/Technical Breakout player who trades small/micro cap plays and who saw a 600% Growth since 2006, Yes even in this down market. I am going to post my real trades (including profits/losses) soon...As a general caution and advice Please start with a small position and always keep your stop losses in place just in case....As usual Do your DD before investing. Thank me for your profits and don't blame me for your losses because you are the one who pulled the trigger!!!