Thread by @pbcinc

$SHVA.TA 1Q21 result for a Covid restrictions TL;DR: EMV POS recurring revs generate strong Rev growth in spite of a slight decrease in transaction numbers (q/q), Despite continued investments, profit surges. Now, what happens with a fully functioning economy? ...1

Q Card Debit actions ⬇️ by 1M (396/397), ATM 25,767/26,569). However, the transition to higher monthly priced EMV POS generated Q 26,547KNIS (21,188) ⬆️ 25%.

Op expenses 14,928 (12,461) ⬆️ 19.7% on personnel employed to execute strategic plan + some professional services ...2

Operating profit (what really matters here) 11,619 (8,727) ⬆️ 33% in spite of reinvestments. (43% of Revs).

What does it mean? Well, $SHVA.TA never stops working as the most important merchants transactions infra. POS upgrade not done yet, expect more lift. ...3

The Israeli economy is open, and on the 1st of June, all restrictions are off. Businesses seem to be booming on a sort of revenge consumption which should continue barring unexpected COVID variant emerging. ...4

The big cash pile - 152,819 KNIS (124,706) Cash and securities despite that last Dividend.

Some action happening below the Op. profit line that is coming from the huge pile of cash + other one-time stuff, this time to our favor - net income 10,215/2,018.
...5

Moving forward, we expect continued uplift from POSs transition plus a display of what a fully operating economy looks like (transaction-wise, with fully functioning tourism, entertainment, and hospitality). ...6

In the background the resolution of the $SHVA.TA #MASAB issue is progressing well, and we will have a new CEO which we suspect is a very good fit for the tasks at hand.

The stock went ~7% ⬆️ on a 1$ USD today in appreciation of these fantastic results.

#Long #Notarec

Finally, multiples on normalized FY are still too low - make up your mind what'rya going to do about it!

Darn Edit Twitter: Over 1 million dollars USD volume. not that low float (1$).