Jason Donville VersaPay Corp VPY-X DON'T BUY May 07, 2012

(A Top Pick Aug 30/11. Up 23.66%.)

(Top Pick Nov 24/11, Down 16.05%) Pairs Trade with DH-T

MasterCard (MA-N) is going to co-brand this company’s e-wallet on their B to B side. This was a big win for them. MasterCard’s sales reps are out pushing this company’s product as well as their own. Feels that their business could double in the next 18 months.

(A Top Pick Jan 27/12. Up 27.28%.)

You are going to start to see big deals announced out of their white labeling. On a take-over it could get from$1 to $3.

This was a big winner for him in prior years. Growth kind of flat lined in the past year and he has exited the bulk of his shares. Still likes the company and feels there is strategic value to it in its partnership with MasterCard (MC-N) and TD Financial. There is more competition coming into the space. Wait to see how the new CEO is going to take the business to the next level.

Still likes the company. CEO has changed in the past year. He wanted to wait and see how execution was. Potential is still there. Still holds the debentures, but not the stock.

(A Top Pick May 27/13. Down 13.79%.) Sold his holdings, but is now back in and feels it is time to start looking at this one again. Valuation is attractive. Still likes the product and the core thesis of helping small companies pay their bills electronically. There is a big market for that. Feels there is a lot of growth to come.

Thinks this is going to take a little bit longer. Had a CEO change last year. The new CEO has good experience in building out the software pieces. Have built partnerships with TD Merchant Services and Century Payments (?) in the US to resell their e- wallet. That is just starting to get traction. The sales cycle is quite long, but the revenues, once they start achieving it, are recurring in nature. It will probably be a year before you start seeing real revenue momentum in the partnerships.

Great management and great Board of Directors. They just finished a raise. Doesn’t think there are any headwinds anymore. With a fully loaded balance sheet, they’ve got a great growth in their client base, having gone from zero to 42 with 17,500 payers in the last year. Just signed on an ERP Vendor news cycle, so they have 437 clients, and it is a very natural channel. Thinks they can have exponential growth this year. They don’t need any money, so there are no capital market headwinds.