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VeriFone Systems, Inc. Message Board

  • tmurphy227 May 24, 2012 8:44 AM Flag

    PAY and PAY PAL Strike deal!!!

    Now the shorts are going to be really nervous. This verifies that PAY is the gateway and PAY PAL needed them. There is no premium in this stock for what PAY has re position in revolution. EMV, recurring revenues, mobile, retail revolution. Deutche Bank what are you talking about. CEO said 10-15% organic growth for years to come. Nice announcement on day of earnings.

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    • tmurphy227 May 24, 2012 10:31 AM Flag

      Stock 47.82 on news and then goes down to 45.32. $2.50 down. this is pure manipulation and SEC should investigate.

    • Is there a downside to this deal?

      • 2 Replies to greenwich301
      • Not really. But it depends on the terms of the deal.
        In any swipe or entry to a payment terminal, both Verifone and Paypal will retain a percentage (or fee) of the transaction. Same with VISA, Mastercard, AmEx., as well as the front-end payment processor (First Data, Paypal, etc.) I am assuming the rates are very competitive.
        The payment architecture is sort of like, Merchant -> Point-of-sale SaaS -> Payment Processor -> Credit Card Network -> Bank.
        This system enables me to make a purchase in London, then swipe any credit card, debit card, virtual wallet on my cell phone, or enter my phone number & Paypal secret ID, then see a debit from my bank account or journal entry on my credit card bill about 4 seconds later.
        As it appears that almost everything from the merchant funnels first to the POS, Verifone is well positioned. Especially now that the business model has changed from merely the POS terminal to now included software and service for everyone else down the line.
        The only way Verifone would be closed out of the loop is in these new dongle type devices (non-Verifone devices) for very small businesses or individuals, where a transaction would occur and go to a cell phone app, thereby by-passing any Verifone involvement.
        But Verifone hardware seems to be ubiquitous and I do not thing the dongle type/cell phone stuff will be a factor in larger business transactions, where PAY is already entrenched.

        As to PAY, I don't see how this company can lose. PAY is everywhere and growing. As we all know, analysts usually get it wrong (Facebook?), usually because they can't accurately establish growth rates. And because most of the investment community is short sighted (quarter to quarter), the price of PAY has been very low lately. Throw in a weakening Euro where PAY does a lot of business and it becomes sit back and hold for the long term time.

      • How did we just lose 2% on a major announcement?

    • tmurphy227 May 24, 2012 10:06 AM Flag

      Appears market thinks not so good earnings coming!!!

      • 1 Reply to tmurphy227
      • I dont see it that way, people are skittish about the db downgrade. I believe company will address growth issue and assure investors company is on track. The sheep sell first and ask questions later. Dont forget hp was down big yesterday, on the misguided dell effect, so sellers dont always act rationally. Its easy to walk a stock down when there is uncertainty. Just my 2 cents worth.

    • tmurphy227 May 24, 2012 9:07 AM Flag

      Announcement clearly shows that PAY PAL needs PAY. Read it carefully. CEO has said on many occassions that the payment processing is a dupoly in North America. To me thie could not bode any better for PAY. CEO has also said that Latin america on fore and Europe is fine and Asia is on fire. I believe that PAY will do the same things everywhere. They saw the future and are in a great position to benefit and win. This is what the deal with PAY PAL tells us.

    • Agreed, and the timing is interesting. I believe Pay is setting up to blow out earnings.

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