Opening:
SilverSun Technologies is an under the radar $20M microcap company with an impressive
growth story. Headquartered in Livingston, New Jersey, SilverSun is a technology solution
provider to small businesses offering a wide array of solutions ranging from electronic data
interchange (EDI) software to enterprise resource planning (ERP) software.
SilverSun’s growth has been impressive. Revenue in 2013 was up 32% and up 21% in the 1Q
of 2014. Overall, revenue has increased 130% over the past four years. With a range of
solutions and an accretive strategy to consolidate the market of Sage resellers, we believe this
growth trend will continue. The company’s success has not been recognized by the market as
SilverSun is valued far below its peers. This valuation disparity adds to SilverSun being an
attractive investment opportunity prior to it being discovered.
With a high level of insider ownership, management’s interests are aligned perfectly with
shareholders. SilverSun’s key growth drivers range from the acquisition of accretive Sage
resellers to the new ability to compete with industry giants such as SAP (SAP) and Oracle
(ORCL) for bigger deals. The company is also targeting to move the mass amount of business
documents between companies from the physical to the digital world with its MAPADOC EDI
solution. With a conservative 30% revenue growth target Q/Q moving forward, SilverSun offers
long term investors a very attractive investment opportunity.
Conclusion:
SilverSun Technologies is an undiscovered microcap company enjoying strong growth. The company’s future expansion will be driven mainly through it’s selective acquisition strategy. Due to the expanse of resellers and the advantages of SilverSun’s position, the company is able to be highly selective and take on only accretive acquisitions. This strategy will position the company as a Sage reselling powerhouse in the future. Further, SilverSun’s lucrative consulting services linked to its Sage software implementation can provide substantial income.
The company’s other segments are also driving growth. Examples of this are clear with SilverSun’s MAPADOC solution, which moves enormous amounts of physical documents into the digital world. With over 400 customers and a record year expected, MAPADOC has been growing at a healthy pace.
SilverSun’s SAAS solutions, such as BeerRun, have also been very successful. BeerRun’s advantages over typical accounting software for craft brewers is evident by it’s growth in the marketplace. BeerRun is targeting the multi-billion dollar craft brewing industry and has the potential to be the forefront operations management solution for the industry in the future.
With valuation much below its peers, a robust cash position, a future raise to increase liquidity and aid in a future up-list in addition to its multi-prong growth strategy, SilverSun is a one-of-a- kind investment opportunity. With the potential for $0.007 to $0.009 in EPS for FY 14, 50% to 100% in upside potential is possible with far greater returns if the company delivers into 2015.
Full Report:
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