[VIDEO ANALYSIS] Can Transactions Solutions International's business model hold up?

William O'Loughlin:

So Cameron's second question was, "What are your thoughts on the financials of Transaction Solutions International, TSN? It's an ATM company based in Perth that operates in India."

This is a very small company. It's a 37 million dollar market cap, which makes it extremely risky. Without even looking further than that, you can tell that this is going to be a risky investment. 

In terms of their numbers, they're currently operating at a loss. They lost money, lost almost a million dollars for the prior half-year. Their expenses are huge relative to their revenue and they have negative operating cashflow at the moment, so all of this just makes this an extremely high risk investment. They don't have any debt, which is maybe a slight positive. Any growth out of this company is going to come from their plans to expand their ATM network in India, but again, extremely high risk. If you're investing in tiny companies like this, we would recommend a very small portfolio allocation just to compensate for that risk.

 

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