Currency Exchange International (CURN), mcap=$89m, price $13.90 vs $13.50

$CURN pitch:
– Currency exchange service provider – both physical and digital.
– Trades at only 9.5x fwd earnings.
– Significant upside potential from both business segments and strong downside protection with net cash equivalent to the current mcap.
– The payments segment transformed from minuscule to $9.6m TTM revenue over the last couple of years driven by continued growth in transacting bank count.
– The banknotes segment (FX retail kiosks) is set to continue recovering with travel returning to pre-pandemic levels (still only at 70%-90% levels).
– The retail business also benefits from Travelex closing its North American operations during the pandemic.
– Wholesaling dollar notes internationally will add a third major revenue driver for the company.
– Financial performance has materially improved over the last few quarters and profitability for the whole company has already reached/exceeded pre-pandemic levels.

$CURN Valuation:
– Trades at 11.5x PE in FY2022 and 9.5x PE in FY2023.
– Also has $25m of excess cash vs only $87m in market cap.
– Limited downside due to $12.75/share net cash and $9/share net working capital less debt.

Exp. gain: Not specified.

Full CURN write-up (free guest account required):

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