Wednesday, February 20, 2008

Get Ready For Vasco Data Securities Earnings

With earnings season in full swing one of our favorites here at Stock Picky is set to report. Vasco Data Securities (VDSI) on will report it's quarterly earnings on Thursday, February 21.

In case you haven't heard of them, Vasco is a company that designs and manufactures security tokens for online banking all around the world, but not so much here in The States just yet. Their stock has fallen from grace, and is back down to a price that I certainly find reasonable for the moment. They had a tremendous amount of backlog 33.4 million to be exact, from last quarter which should help out on the earnings release tomorrow.

During the last conference call Vasco did reaffirm their full year guidance for revenue growth, gross margins and operating margins, so things from their standpoint appear to be very healthy. The real question is will the banking crisis hurt Vasco's bottom line? A logical person would think that security for it's customers should be #1 priority, so I find it hard to believe that there will be many cutbacks from banks.

Now, like with any stock it is very easy to get burned in earnings season, ah but that is the beauty of being a long term-investor. You can put some in before earnings, and then add to your position over time. Buying on the dips and selling on the peaks if you so choose.

So is Vasco Data Securities a slam dunk? Of course not, I mean is there really any slam dunks in this market? Just remember that you need to focused on the future, and I can tell you that with Vasco's vast customer base, and growing presence around the world the future sure looks bright for this company...


  1. Yesterday, I bought 5k of VASCO stock ... and have lost almost half the value today... 1st time I've bought an individual stock (rather than mutual fund) in over 5 years, and boy did I get burned.

    Sidenote: I had to open a blog to post this comment, something iv'e been meaning to do for, oh, about 5 years...

  2. Sorry to hear about your lose... It has been a very rough go for Vasco over the past couple quarters. Needless to say, it has been a very rough couple quarters for a lot of stocks out there.

    I hope that you did not put in all of that money at once so you can bring down your cost basis by picking up a bit more stock down at these levels.

    Vasco did just sign up with the Mizuho Bank the other day which is one of Japan's largest banks, and is the first bank that Vasco has signed up in Japan. Obviously a great sign, but the market doesn't want to hear any good news right now.

    What can I say it has been a horrible market and no one seems to have an appetite for growth stocks... especially ones that miss the analysts numbers, even if they were a bit too high.

    I hope this helps...