Shares in public data group Information Services Corp (TSE:ISV) nudged higher Wednesday as it received an upbeat assessment on its potential from J.C. Clark manager Colin Stewart.
The Globe and Mail newspaper today reports that Stewart notes that the company has long-term contracts that generate 'significant' cash flow and has 'high barriers' to entry.
40% upside seen
Its strong balance sheet allows for more acquisitions and it has a dividend yield of about 5%.
The firm represents "an opportunity to buy a high-quality business at a discounted price", he suggests.
The Saskatchewan-based company provides registry and information management services for public data and records.
Stewart sees 40% upside in the company and it trades at a discount because it is followed by a few sell-side analysts and institutional investors.
It has also been hurt by concerns about the Saskatchewan housing market, he says.
However, the company collects revenues from more than Saskatchewan land sales, where it has an effective monopoly and is in year five of a 20-year deal.
It also does a variety of corporate and personal-property registry services in the province, and it has started expanding outside of its prairie home, with a license to register property in Ontario and deals to acquire technology to serve Canadian lenders, says Stewart.
Shares are up 1.85% to $15.99 in Toronto.
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