Just two weeks ago, I wrote that Tix Corporation was trading at a considerable valuation discount to the market given their latest report and projections.

Today, somebody (or some institution) is apparently agreeing with that assessment.   Tix Corp volume is well over five times normal levels at mid day and the price has risen 20%.  Even after this rise, given the stated projections for the year by management, the company is trading at only around 10 times GAAP earnings based on their latest conference call guidance and around 5 times adjusted earnings projections.

In my article two weeks ago I complained that the company ought to provide non-GAAP figures for its shareholders.  It's possible that with today's announcement of a new CFO, Tix Corp plans to begin providing adjusted figures, which will better reflect the valuation opportunity.  With a strong balance sheet, positive cash flow, and minimal tax obligations due to past losses, this company is a strong buy with a market cap that deserves to be at least double where it is currently trading.

What might be most bizarre about the company is the fact that its share price was rocked by a large shareholder who had to sell his shares due to a margin call, according to the company's CEO.  Tix Corp stepped in and bought some of those shares.  But the damage had already been done.  Perhaps even more bizarre is that it has taken this long for a larger outside buyer to begin to recognize the opportunity.  Sure, it never helps when a company has no sell side analysts, no significant institutional ownership, and an apparently ineffective Chief Financial Officer.

All of that is likely to change.  Two years of healthy cash flow and recent acquisitions presents a great long term small cap value opportunity.