Market Overview

Does The QHIX Have Q4 Systems Destined For Greatness?

Does The QHIX Have Q4 Systems Destined For Greatness?
3 Reasons Investors Should Follow Conferences
3 Small Caps With Revenues Rising In The Double Digits

It has been a great year for Q4 Systems (NASDAQ: QFOR) and its shareholders. Although it is a small cap firm in the information technology sector, clients of Q4 Systems have included such blue chips as Alcoa, Wal-Mart, and Walgreens, among many others.

A previous article on Benzinga, "A Small Cap That is Cashing in on ObamaCare," detailed why Q4 Systems would do well as a result of the Affordable Care Act, or ObamaCare.

With the stock price up more than 500 percent for the last year of market action, that has clearly happened. Revenues are increasing by 40 percent on a quarterly basis, according to Yahoo Finance. Unlike many small caps, Q4 Systems posts a gross profit, has hundreds of employees, operates in several companies, and as a high retention rate for clients. As a result, while it is now trading at under $1, two of the most recent analyst recommendations have Q4 Systems at $5.25 a share and $7.00 a share.

Shareholders could be rewarded even more if the projections for the QHIX solutions prove to be true.

Related: Buying Stocks "When You Have the Money"

Q4 Systems offers the QHIX public health insurance exchange and the QHIX private health insurance exchange. These are packages to assist clients in both the public and private sector to select the best package of benefits that comply with ObamaCare. The QHIX programs work very well.

How well?

At present, the market cap of Q4 Systems is just under $60 million. A recent investor conference predicted that revenues from the QHIX solutions would be at a run rate of $48 million yearly by the end of 2014. That would contribute to overall revenue for Q4 Systems totalling $128 million, per the projections of the analyst community that follow the stock.

For value and growth investors, that would make Q4 Systems a very appealing stock.

To have revenues at more than twice the market capitalization of a company is very enticing for value investors. A 40 percent quarterly growth rate for revenues should get the attention of growth investors. With a gross profit of $6.38 million, Q4 Systems is obviously a company that is well managed.

That is has clients such as Wal-Mart, Alcoa, and Walgreen is testament to the appeal of the products and services of Q4 Systems.

Posted-In: Long Ideas Small Cap Analysis Technicals Economics Markets Analyst Ratings Trading Ideas General Best of Benzinga


Related Articles (QFOR)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

How To Find The Perfect Tax Preparer

Buying Stocks "When You Have the Money"