the more i like it!, page-5

yeah - despite all the hype around CPU, i'm fairly skeptical. A lot of brokers claim the company can earn revenue in all business cycles but i'm not so sure.

Firstly, their registry business (which is the BAU bread and butter) is steadily diminishing. Typically register breakdown are being heavily weighted to instos and less to your retail holders. As CPU derives fees from holder interactions with the register, these decline as register numbers fall.

Secondly, the area that CPU makes big margins from is Corporate Actions - takeovers, mergers, etc. The problem as that corporate activity has been really subdued of late, despite many market commentators claiming that it will improve. Additionally, if a company gets taken over and CPU ran the register for it - it loses a client straight away. Whether CPU is on the right side of a takover is complete luck so no real guarentees there either.

Thirdly, competition in the registry business is really heating up and CPUs clients are starting to shop around - you can tell when suddenly you start getting letters from link or advanced rather than CPU in the mail. Clients are most likley squeezing CPU in contract negotiations. I can only assume this but it would make logical sense for clients to pass on cutting pressures.

Just my view!

DYOR