INXSF / INX.V very nice Q4 numbers

In-touch survey which is currently my favorite equity from a risk/reward perspective pre-announced their results for 2007 and Q4.

In a nutshell they showed 120k loss for 2007 however this was because they took a one time $260,000 asset writedown in Q4. Without that writedown they actually earned around $100,000 in Q4 or just under a penny a share.

Given that Q4 is their seasonally weak quarter these numbers were actually downright outstanding. They have also reaffirmed guidance for 40% revenue growth in 2008. Some back of the envelope calculations tells me they ought to do around .10/share for 2008 with that growth level.

Of course the company has a history of underpromising and overdelivering so I think they could do even better. You also recently had a private placement done with insiders at .25 a share which at the time was what the stock could be bought for in the open market. It is very rare for insiders to show the kind of confidence. Private placements are almost always done at a decent discount to market prices for microcap companies.

As I stated before I think there is an excellent chance INXSF sees prices north of $1.00 in the next 12 months. There could still be opportunities left to buy cheaper but at .25, .30 or even .40 I think the risk reward looks very good.

Hard to believe anyone was ever willing to sell me shares at .17. Wonder what they were smoking and if they would like to share?