Symbility Solutions (SY-X)

This makes software for insurance adjusters, who are still notating on paper what needs to be fixed. He used to own this and wants to buy it back. Very good management team. The chart is looking better and he thinks that business is turning around.

Sells workflow software into the insurance space. They lost their biggest customer about 2 years ago, but is now starting to turn the corner. Insurance is a very stable business, even in a bear market, so he thinks this will continue to do well.

On his watch list. They do technology solutions for property/casualty insurers. Lost their largest customer over a year ago, but since then have done a lot of smaller sales, mostly out of Europe. Recently acquired their European distributors so are effectively cutting out the middleman. That should help with margins. In all of the due diligence he has done, it indicates they have the best technology in their space.

He sold at the end of last year when they lost their biggest customer. That customer has an agreement to the end of the year and following that the stock may drop to levels where one should get in.

(A Top Pick July 25/13. Down 37.23%.) Still likes the product, and thinks there is potential in the company, but they lost their biggest customer.

They were about to lose their largest customer, State Farm and he was stopped out of his holdings. Their software for claims processing on property-casualty is really nice. He is now in a “wait and see” mode.

They had a better mouse trap in terms of better claims processing. Ran into trouble when their largest customer dropped them. They changed chief technology officer at the customer.

Has a product that ties together contractors and insurance companies. Helps the contractors do estimates. Recently fell from $0.40 down to $0.30 because a large US customer is moving their business to someone else. Thinks this is temporary. Very active in both the UK and the US. Would prefer to get it cheaper.

Software company for insurance companies. Chart shows it breaking down through the $0.40 level, leading to a quick downside. Chart shows some support at $0.30. If it breaks down through the $0.30, he would get out.

(Market Call Minute.) Loves this. Almost made this a Top Pick for today’s program. Their market share is exploding in the P&C claims processing market. Season has been down for the last 6 months, but that is going to come back and normalize.

Insurance software providers. Used by insurance claims adjusters and is on a per use basis, so it will start to move when there are more natural catastrophes. This rarely goes below the $0.40 level. If you can pick it up in the high $0.30, or at $0.40, you are going to do okay.

A disruptive company in the insurance claims software application market. They are taking market share. Thinks they could go from 5% to close to 50% over the next three years so valuation is not at all challenging. Recurring revenue from the software as a service business. The risk is on execution, but so far so good. All his consultants tell him they have a superior solution.

If you are interested in this, just bid under $0.40. Thinks it is being hurt by a general disdain for technology right now. The business itself is fantastic. They have software for insurance claims adjusters and it is the best on the market. Business has grown and improved but the multiple has come down, so it has offset any gains. In a better tech market, you are going to see this take off.

Make software that helps insurance companies adjust for claims. (E.g. you have a flood and an adjuster goes out and uses their software.) Gaining market share very, very quickly because it is superior to anything else out there. Have some very interesting strategic investors. Thinks the stock is going to do very well. Basically it is a recession proof business.

Claims processing software. Insurance companies are saying they need new solutions which these guys have. Selling software as a service. They have 5% of the market and he sees it going to 50%. You could really see explosive growth.