The 13th fastest-growing tech company in Canada is

PNI Digital Media¹, the company formerly known as PhotoChannel. And I own a few shares of it. How exciting. What would be more exciting is if it started consistently growing profits, and not just revenues. I'm on the fence between holding this one to see if Edelheit's latest predictions of exploding sequential growth in EBITDA come to pass, or selling it.


¹"PNI Digital Media" -- those nine syllables don't exactly roll of the tongue, do they? They should have stuck with PhotoChannel, even if they are expanding into areas beyond digital photo processing. Burger King doesn't just sell burgers, but its management had the good sense to not change the chain's name to "BKI Fast Food".

Answering Requests, Part III

NDL11 asks, pithily,

PNDMF

In response, I offer this recent correspondence between me and Aaron Edelheit, from Aaron's blog:

1. DaveinHackensack Says:
August 14th, 2009 at 1:09 am

Aaron,

I saw your comment on the company formerly known as PhotoChannel on the VIC. Do you have an updated target in mind for when the company will start consistently posting positive EPS (not just cash EPS)? Just curious.

2. admin Says:

August 14th, 2009 at 1:48 pm

$2.50 to $3 per share in the short run. If some of their growth prospects such as getting Wal-Mart, the stock would be much higher. They will post positive eps in the December quarter.

amortization blocks it because the company made two acquisitions.

3. DaveinHackensack Says:

August 14th, 2009 at 2:33 pm

Do you envision they will be profitable consistently from the December quarter forward?

4. admin Says:

August 14th, 2009 at 2:40 pm

The march quarter may be their last negative eps quarter because of seasonality. But again, all I care about is cash flow.