Never heard of 'em but took a quick look. Microcaps are a scary lot but you seem prepared to assume the risk here. Bottom line: They compete against much bigger and better funded players, have been transitioning away from the Fed teat for what, three years? Not gaining much traction so far. In fact it looks like product sales are flat or down. Are you hoping for a buyout for their intellectual property? or do you think they'll finally get rolling in the commercial space? And if so, what are they doing that gives you confidence?
Either way, I bet you could find a more compelling story...
But years before that I wasn't really interested in the income portion of investing, so PM wouldn't have been on my radar. I rode the high tech train and have no complaints.
Your adoption rate may be a tad high - at least initially and you need to move your decimal over one place (.1%) to extrapolated Apple's cut of the transaction. But still...
I don't have the hard #'s in front of me, but I seem to recall Visa records almost $1 Trillion per year in charges (just in the US). MasterCard and AmEx combined also total around $1 Trillion per year.
Add the rest of the planet + debit/ach transactions and you begin to get a sense of what Apple is looking at.
And the margins? Even higher than iPhone memory upgrades which run in the mid-90's.
The early reviews suggest Apple nailed it on the first pass. My few personal contacts in the payment space confirm anybody who's anybody is jumping into bed with Apple Pay; by leveraging the existing infrastructure, this has the potential to do for the issuers and processors what iTunes did for the entrenched music industry; a win for vendors, a win for consumers, and a win for Apple. Well played Tim!
"Shares of Apple (AAPL_) rose 0.64% to $101.71 in morning trading Tuesday after Susquehanna Financial Group gave a positive review of the tech giant's mobile wallet Apple Pay.
"We think Apple Pay was very well done," the group wrote in a research note. "The Apple Pay mechanism is much easier than the prior attempt by Google (GOOGL_) with Google Wallet. Apple Pay simply requires that one put their finger on the Touch ID sensor, present the phone, and that's it."
Every 1% share of U.S. credit or debit card purchases through Apple Pay will add 0.1% to the company's operating earnings, while every 1% of worldwide transactions will add 0.4%, Susquehanna reported."
The executive team gave a presentation during it's investor/analyst event this morning. There's an audio and PDF link on the DNKN website for anyone interested in the presentation.
My guess is the initial wave of selling on the open was the result of disclosing some near term comp store weakness for this Q ( 2 - 2.5%). Guidance provided for next year all looked good to me. There is, and will be for a while, a very large growth opportunity for DNKN (and BR) both here and around the world.
Go check it out and draw your own conclusions.
Depends on how the deal is structured (assuming one happens at all!). They could chose to take an equity position in InBev, and carry that value on the balance sheet much like they do now with their SAB stake.
They could do an equity + cash deal, or take all cash. I believe this is a very good mgmt team that could find ways to put a windfall like this to good use - and not in the form of a special divvy. A nice strategic acquisition seems more likely.
It'll be interesting to watch this unfold!
Altria controls almost a 30% interest in SABMiller which is rumored to be in the cross hairs of InBev. Takeout price tag rumored at $125 BILLION = ~$40 BILLION for Altria. As a MO investor, I'd love to see this value unlocked.
While this thread is useless, MO offers investors spectacular returns - especially those who seek dividends + capital appreciation. Tobacco politics aside, this "cash machine" qualifies as a core holding for prudent investors who enjoy growth, income, and a good nights sleep.
Went long four years ago @ $20 - $24 and still see no reason to sell a single share.
Thanks for the updates from the field! Not surprising, but still reassuring. This is the dawn of a new age California Goldrush a la DNKN!!!
I'm sure you've noticed both volume and price rising since the big boys all came back from vacation.
Five day chart says it all.
You got it!
Folks generally don't understand how the whole issuer/processor industry works. But, if Apple does it right (and I'm sure they will) all the big boys will benefit while Apple carves out this new niche and takes it mainstream.
The numbers get scary after a while...
And guess who'll be scalping a few pennies on each and every transaction that gets processed. Globally. By billions of consumers.
Huge new category for Apple. HUGE.