1)We know the financials, so no surprises there except that they have now signed off on senior debt facility with CBA. Interestingly, one of the conditions of the facility is that surcharging has to start no later than 3rd Marck and they have to have sold down at least $6.8 mill of assets by Dec 31. So now I guess that 3/03/09 is set in stone and that they will be selling an asset for at least $6.8 mill (note 35 in the financials)
2)We are getting more noise on alternate revenue streams not reliant on transaction volume. This is extremely good news given the markets' almost obsessive behaviour towards transactional volumes.
3)New Zealand appears slow. I have read somewhere recently that one or two banks are still not letting their cards be processed by non bank merchant ATM's. I also understand that it is more a problem to do with IT than to do with politics, so hopefully that should resolve itself before too long.
4)Back on their debt facility, I see that it is renewable in 12 mths. From their statement it would seem that they will have a dramatically different balance sheet by then and will want to renegociate with the bank then...it says something about their confidence towards their cashflow projections when you only want to sign up for 12 mths with a bank for $50 mill.
I, like most posters on this website are happy holders of CUS. All through the ructions of the credit crisis, the company share price has held firm. I am extremely impressed with its performance, especially when you consider that almost 1 billion shares are held by the top 20 shareholders..thats an average of 50 mill shares each..imagine if one of those holders had been a seller in the last 9 mths into this thin volume...we would had been crushed...But what it really tells me is that 70% of the shareholders are very happy holders and are not forced sellers...in other words, a quality register.
CUS Price at posting:
$1.15 Sentiment: ST Buy Disclosure: Held
