Last evening, ActivIdentity (ACTI) reported financial results that demonstrated significant progress in the company´s turnaround.

An interesting compensation arrangement with senior executives, an upcoming first ever cash-flow positive quarter, a very low relative valuation to competitors, and a sector teeming with acquisition activity, has us excited more than ever about ActivIdentity (ACTI), and we’re buyers on this recent dip in the stock price.

Congrats to subscribers who have held on to ActivIdentity (ACTI). We recommended the stock on CasinoCapitalism.com, back in March 2006, at $4.37, and after alot of volatility were finally rewarded today with the announcement of a huge HSPD-12 government contract. Specifically, the company announced
a major contract win with the U.S. Department of Defense (DoD), U.S. […]

We just had a chance to listen to ActivIdentity´s latest conference call. All in all, we are impressed with the company´s focus on minimizing cash burn, and driving the business to profitability via continued costs cuts and new revenue generating initiatives. Management is forecasting decent revenue growth next quarter and expects to reach cash-flow positive […]

Last night EMC announced the acquisition of RSA Security (RSAS) for $28 per share in cash or about $2.1 billion. After stripping out RSA´s cash position, it appears that the price paid for RSA was approximately 5X 2006 revenue estimates. This acquisition of RSA Security is very positive for all the players in the identity […]

Yesterday, ActivIdentity (ACTI) released earnings results for the March Quarter. As expected the company burned thru more of its cash hoard, but on a more positive note signaled that the cash losses would begin to decline steadily with cash breakeven expected later this year. In addition, the company is guiding towards modest revenue growth […]

Investment Summary:We believe that ActivIdentity (Nasdaq: ACTI), at its current price of about $4.37, represents a low-risk investment, with substantial upside price potential in the next two to three years, as the company capitalizes on new growth opportunities in the digital identity assurance market, under the guidance of the new CEO, Jason Hart.

Background:
The current […]