another buy call in australian

WHILE former market fave Customers (CUS, $1.96) struggles to regain momentum, two of its newer listed ATM rivals are enjoying keen support on the back of go-go announcements this week.

The low-key iCash (ICP, 49c) has a 47 per cent interest in Korean ATM maker NeoICP, but also manages or owns about 1400 of the machines locally. ICash yesterday announced NeoICP has won a $63m contract to supply ATMs to Korea's Lotte Group, adding to an earlier $100m order.

ICash reported net earnings of $3.2m for the year to June 30 and has forecast $6.2m this year. Shaw Stockbroking expects a maiden dividend of 2.3c a share.

On Tuesday, recently listed GRG International (GRG, 23.5c) acquired the local eFunds, which supplies ATMs to Suncorp Metway.

As with Customers, the biggest local non-bank ATM operator discovered there's legitimate investor concerns about whether a slowdown in local ATM patronage is permanent.

In a rambling update released after the market closed, Customers said the downturn related to generally soft consumer sentiment, "rather than any systemic change in demand for third-party ATM services".

GRG and iCash dodged these fears of a slowing (and, arguably, saturated) market by focusing offshore.

We rate iCash as a buy and GRG and Customers holds.

Meanwhile, Adelaide-based MyATM, the biggest buyer of iCash ATMs, plans to list in the next two weeks after a delayed raising aimed at rustling up $4m to $10m. MyATM's business model involves selling the machines to individuals and operating them on their behalf.

Source: http://www.theaustralian.com.au/business/global-sell-off-experts-are-thick-on-the-ground/story-e6frg8zx-1225955231209 (2nd part) - Criterion