NamSys Inc. (TSXV: CTZ)
Buying a "Fortress" Balance Sheet for 11x Earnings
Date: January 26, 2026
Ticker: TSXV: CTZ
Price: ~$1.28 CAD
Today we are running NamSys Inc. through the full 21-point Microcap Master Checklist. This company operates in the unsexy world of “Cash Logistics Software,” but it dominates its niche.
Here is the deep dive.
PHASE 1: THE FORTRESS (The Kill Switch)
These are binary filters. If “NO,” the stock is rejected immediately.
[X] 1. The “TFSA Compliance” Check
Rule: Listed on TSX, TSX-V, CSE, or NEO?
Verdict: PASS
Data: Listed on the TSX Venture Exchange (Tier 2 Technology Issuer) under ticker CTZ.
[X] 2. The “Ryan Irvine” Solvency Test
Rule: Net Cash Position? (Cash > Debt).
Verdict: PASS (Elite)
Data: As of Q3 2025, NamSys holds ~$9.55 million in cash and short-term investments. Total Debt is $0.00.
Insight: Cash represents roughly 25% of the market cap (~$0.35/share). We are buying a fortress.
[X] 3. The “Anti-Commodity” Filter
Rule: Non-resource business? (No mining/oil).
Verdict: PASS
Data: This is a pure-play SaaS (Software-as-a-Service) company. They do not manufacture the safes or drive the trucks; they sell the cloud software that runs the logistics. 99% of revenue is recurring.
[X] 4. The “Paul Andreola” Dilution Gate
Rule: Revenue Growth > Share Dilution? (Share count shrinking is best).
Verdict: PASS (Gold Standard)
Data: Share count is shrinking. The company has an active Normal Course Issuer Bid (NCIB). In Fiscal 2024, they repurchased and cancelled 355,600 shares.
[X] 5. The Profitability Gate
Rule: Profitable OR Cash Flow Positive?
Verdict: PASS
Data: Highly profitable. Net Income margins are 31%. They have been profitable for over a decade.
PHASE 2: THE ENGINE (Growth & Drivers)
Does it have the “Rocket Fuel” to double or triple?
[X] 6. Sales Velocity
Rule: Revenue Growing > 20% YoY?
Verdict: MIXED (Hidden Rocket Fuel)
Data:
Total Revenue: Grew 12% in 2024.
Recent Trend: H1 2025 hit 21-23% (Pass), but Q3 2025 decelerated to 10% (Fail) as a major rollout completed.
The Hidden Engine: The specific Cirreon CIT segment (Logistics) grew 52% in 2024. We are buying the high-growth segment masked by the slower legacy business.
[X] 7. The “Rule of 20”
Rule: P/E < Revenue Growth Rate? (PEG < 1).
Verdict: PASS
Data: P/E is ~15x. Earnings grew 29% in 2024. The PEG ratio is roughly 0.5–0.8.
Valuation: Ex-Cash P/E is only 11.2x.
[X] 8. The “Jason Donville” Quality Floor
Rule: ROE > 20%?
Verdict: PASS
Data: ROIC is rising. Net margins expanded from 26% to 31% in 2024. This proves they have pricing power and operational leverage.
[X] 9. The “Unit Economics” Check
Rule: Gross Margins > 40-50%?
Verdict: PASS
Data: Gross Margins are 63%. Operating Margins are ~39-41%. These are elite software margins.
[ ] 9a. The “Telford” Momentum Check
Rule: Trading within 20% of 52-Week High?
Verdict: FAIL
Data: The stock is trading at ~$1.28, down from a high of ~$1.68. It is in a consolidation phase.
Why: See Rule 10a below.
PHASE 3: THE DISCOVERY (Entry & Advantage)
Why is it cheap? We are looking for “Information Arbitrage.”
[X] 10. The “Institutional Gap” & Liquidity
Rule: Market Cap < $100M and Volume < $50k/day?
Verdict: PASS
Data: Market Cap is ~$36M CAD. Daily volume is extremely low (~6,000–12,000 shares/day). Big funds simply cannot buy this yet.
[X] 10a. The “Greenblatt” Special Situation
Rule: Artificial selling pressure (Spinoff, Forced Seller)?
Verdict: PASS (The Estate Overhang)
The Situation: The Estate of the late Chairman (K. Barry Sparks) is systematically selling shares for liquidity/estate planning.
Evidence: Insider filings show the Estate sold 92,000 shares in three days in Jan 2026. This artificial supply is the only reason Rule 9a (Momentum) failed.
[X] 10b. Share Structure Tightness
Rule: Tight Structure (<50M shares)?
Verdict: PASS
Data: Only ~26.9 million shares outstanding. A very tight float means when the Estate stops selling, the price can move fast.
[X] 11. The “Scuttlebutt” Verification
Rule: Verified product/customer?
Verdict: PASS
Data: Verified customer: Brink’s (accounted for ~38% of revenue historically).
Stickiness: Zero customer churn in 2024. Net Revenue Retention is 112%.
[X] 12. The “Insider” Alignment
Rule: Management owns > 10%?
Verdict: PASS
Data: Management and Family entities control >30%.
Buying: CEO Jason Siemens was buying shares in the open market in February 2025.
[X] 12a. The “Intelligent Fanatic” Track Record
Rule: Proven track record?
Verdict: PASS
Data: Jason Siemens isn’t a hired gun; he is a “Second Generation Operator” who started as a programmer 15+ years ago. He successfully pivoted the company from legacy software to Cloud/SaaS.
[X] 12b. The “Promotion” Test
Rule: Talks business > stock price?
Verdict: PASS
Data: In interviews, Siemens focuses entirely on “efficiency,” “margins,” and “cash supply chains.” He actively avoids hyping the stock.
PHASE 4: THE HOLD (Compounder Mindset)
[ ] 13. The “Connor Leonard” Reinvestment Test
Rule: Can they reinvest at high rates of return?
Verdict: MIXED / FAIL
Data: They are struggling to deploy capital. They have $9.5M in cash because they cannot find acquisitions that meet their high standards. This creates “Cash Drag.” However, they return excess cash via Special Dividends ($0.05 in 2024).
[X] 14. The “Owner Earnings” Shield
Rule: Stock down but Earnings up?
Verdict: PASS
Data: The stock is flat/down, but Net Income grew 29% in 2024. This is a classic “coiled spring” divergence where valuation compresses while value increases.
[ ] 15. The “Francois Rochon” Rule of Three
Rule: Psychological acceptance of volatility.
Verdict: N/A (This is a mindset rule for you, the investor).
PHASE 5: THE EXIT (Selling Protocol)
Currently, we are buying, so these are N/A.
[ ] 16. Trigger A: Euphoria Trim
Verdict: N/A (Stock is depressed, not euphoric).
[ ] 17. Trigger B: Thesis Breach
Verdict: N/A (Thesis is intact: SaaS transition is working, margins are high).
[ ] 18. Trigger C: The Upgrade
Verdict: N/A (Currently evaluating entry).
PHASE 6: CASH MANAGEMENT (The Odd Lot)
[ ] 19 - 21. Odd Lot Tenders
Verdict: N/A (There is no current Odd Lot tender offer active for this stock).
FINAL SUMMARY
Total Checklist Score: 15 PASS / 2 FAIL / 4 N/A
The Bottom Line: NamSys Inc. is a textbook “Checklist Darling.” It passes every single test for solvency, profitability, and insider alignment.
The two failures (Momentum and Reinvestment) are technical, not fundamental. The lack of momentum is artificially caused by the Estate liquidation—a temporary “Special Situation” that creates an opportunity for nimble investors.
The Strategy: I am accumulating shares in the $1.28 – $1.30 range, buying alongside the company’s own NCIB bid. My thesis is simple: “Estate Arbitrage.” Once the Estate finishes liquidating and the “Sell Wall” vanishes, the market will likely re-rate this 11x P/E business to a standard SaaS multiple. This implies a near-term target of ~$2.00+ (approx. 55% upside).
Disclaimer: I am Long CTZ.V. Do your own due diligence.