Right now it's out of favor. Being open source the market isn't trusting the numbers of customers and revenue they are gaining quarter after quarter and growth will slow, and the cash burn is a concern. We will see in a few quarters. They are projecting profits early 2017.
One would think that if Square is valued at 4 billion at their IPO that Verifone would be valued at least the same, since they are one of the market leaders in payments and have an established position in the business.
Money 2020 is going on now in Vegas, perhaps they are getting attention with their new platform verifone Engage. All the payment related companies are there.
That is a good question. Both of their biggest competitors Ingenico and Pax global have had great earnings this quarter. It should carry over to Verifone for the rising tide. Earnings are coming up, we'll see.
I think all the terminal manufacturers are moving into other sources of income. Once the new terminals are in then there will be a downturn in business unless they can supplement that with services or like you just mentioned processing. Verifone doesn't have a ton of cash to buy companies with but they are well run, perhaps a merger with another company could make them more profitable. Credit cards are not going away for quite a while so terminals will be around but change is happening all the time in this business. There is resistance in the restaurant business to buy more terminals so PAX has an advantage with lower cost products. Ingenico has soared the last couple of years so they are getting market attention, why Verifone is not performing puzzles me.