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VeriFone Systems, Inc. Message Board

  • carmaruti12345 carmaruti12345 Dec 4, 2012 8:01 PM Flag

    New to Pay

    Hi Folks,

    I am new to PAY and this message board. Pay looks very attractive looking at fundamentals, with forward looking P/E for 2013 below 10.

    So what happened early this year that made the stock collapse from 50 to 29? I see they confirmed there guidance in May 2012...

    Thanks

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    • Subseaworker explained it pretty well. The company did not give clear guidance for organic growth and the fire in Brazil was reported late. PAY has a worldwide exposure and it will benefit as the world moves from cash to credit card. Their biggest competitor is Ingenico, look at the PE that the market gives them. If the earnings are good next week the share price should start to move up again. Square has a bunch of competitors in their nitch to deal with.

      Sentiment: Buy

    • Subseaworker explained it pretty well. The company disappointed analysts by not being totally open about growth and the fire in Brazil. Square is one of many devices used for I phones and I pads, they have a nitch they are working. Verifone has a worldwide exposure, the world is working its way from a cash to credit card, Verifone will be there as this growth happens. Ingenico is their biggest competitor worldwide ING.pa, look at the PE the market is giving them, if the earnings are good for Verifone next week they should have a good move.

      Sentiment: Buy

    • 1. Last May, Deutsche Bank had some questions on accounting issues regarding organic growth concerning the Hypercom acquisition.
      2. Last June, PAY was hit with $17 million judgement to their bottom line for a patent infringement suit. They will appeal the ruling.
      3. Last summer, weakening euro cause about $4 million miss which affected cash flow. Previous conference calls with investors indicated that currency exchange rates would not adversely affect cash flows. This caused a credibility gap with investors.
      4. Q3 number were good but guidance for Q4 was lowered.
      5. A fire at PAY's facility in Brazil caused loss of revenue due to loss of contracts which their competitor Ingenico captured. This news was not revealed until the release of earnings, thus further increasing the credibility gap with investors.
      6. PR snafu cause news by Square to gain traction as a reported "competitor of PAY". This was found to be a manipulaiton of the truth, but the negative PR shaved off a few more $ to the stock price.
      7. In August, PAY won a $35 million contract with Wash. DC. taxis, but due to infighting in Washington and corrupt taxi commission along with corrupt councilman Marion Barry (yes, the same Marion Barry from the crack cocaine/prostitution sting arrest in the 90's), caused a judge to pull contract and will be bid again.
      8. More ineffective or non-existent PR, caused PAY business to be grossly misunderstood by the street.

      1. On the plus side, most analysts rate PAY as either a buy or strong buy with an average target about $42-45 and top at $60.
      2. The CEO plopped down $5 million of his own money to purchase some PAY shares at $32.50.
      3. A few weeks ago, Maquarie Bank suddenly purchased 12.93% of PAY shares which appears to be for investment purposes or possible news that PAY may be a takeover target.
      4. Stock appears to be greatly undervalued.

      I had been out of the stock for months but bought some yesterday under $30. Unfortunately I was only able to buy about 25% of what I wanted before the price shot up yesterday afternoon.

 
PAY
36.34+0.17(+0.47%)Jul 22 4:05 PMEDT

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