re: keycorp silently putting everything into place Analyser,It's...

re: keycorp silently putting everything into place Analyser,

It's hard to know why they have drifted.
It's probably for a number of reasons rather than just one.

They said any acquisition had to be cashflow positive from year one. So as long as they stick to that criteria any placement should be seen as a positive to the company.

My guess is that a lack of announcements of late has caused the stock to drift more than anything else.

But once they announce any more contracts that a biased to this serives niche I think the market will sense a new positive direction for the company and may get rerated.

It is currently on a very cheap multiple and the company should report a profit increase again next report & maybe increased dividend. So it looks like an attractive play at current prices.

The story might get really interesting in 2005 as more Banks get ready for the EMV change over before the deadlines expire. For Australia I'm pretty sure it is by January 2006. With Keycorp aligned with 3 of the 4 major Banks this can only be a great opportunity to really cash in on their current relationship.