The stock price has really been performing well. I don't know what the reason for the improvement is, but NCR seems to be tracing the price action, so the cause of the increase may be industry related and not company specific. I am surprised that no one has commented on the price recovery in the past few days.
This stock flagged on my radar in late November when it started to trade under $27.
It met all criteria for a decent current ROE (all things considered in the banking industry), a good dividend, a PE that will shrink under almost assured increased earnings, and a good fundamental outlook for their business as banks recover and spend on automated services to keep labor costs down and growing needs for security. Add in the 2009 sea change and forward kicker where people of modest will not be given a credit card - and must use cash. I bought!
The only stinker - the high debt. But, risk from debt can be balanced by the interest other firms have had in acquiring DBD. Offers could come back even though management wants everyone to stay away. For a non-employee shareholder, a hostile bid is the best bid (premium)!!!
Yes, I bought for many of the same reasons and a few others. I must disagree on the debt being high, though. According to Yahoo's Key Statistics page, DBD has debt of ~$585 million, but free cash flow of ~$328 million (trailing twelve months) and cash on hand of $385 million. That doesn't seem high for a company with an enterprise value of $2.2 billion. Also, Value Line has their total debt at 23% of capital (10-9-09).