Stockpickr Guest Columnist
When looking ahead to 2008, one would be remiss to forget the opportunity that exists for business in Asia from the Summer Olympics. The company mentioned that large customers are very interested in selling products in China, specifically mentioning this as a catalyst. They have been able to build connections to support local payment types in China and expect to be in full operation by the summer.
CyberSource appears to be in a great position to serve its customers while providing significant shareholder value in the coming years. The stock rallied more than 20% the week of earnings, but I see no reason why investors should wait to get in on this one. The company grew at 60% over the past year and based on 2007 EPS of 39 cents, only trades at a price-to-earnings multiple of around 42. This year, analysts expect 62 cents a share and the risk is very low that the company will fall short of these estimates if history tells us anything. I expect the company to continue its record of accomplishment of blowing away analyst estimates. Giving this company a multiple twice the value of its growth, there is no reason why shares should continue trading below the 52-week high of $19.63. CEO William McKiernan stated that 2007 marked the strongest position ever for the company, all in the face of a brutal retail environment.
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