While I share some of the frustrations, on balance this is a good, if not fantastic report. The real story remains China and the wider Australasian expansion. Baker and co are working to an ambitious plan, one that has taken longer to implement than us hungry profiteers may like, (and I use the term in the long term sense,) but when it comes it will still be worth the wait. We need to remember they also have a lot at stake, certainly a heck of a lot more than me.
The big disappointment was to see the same figure of only 400 ATMs deployed in China, yet contracts in place to deploy 7,000. That figure of 400 has remained unchanged for over a year. They even admitted to being disappointed themselves, but hinted at things moving faster from here on in. I've been trying to figure out the reason for the delay and can only assume that it's something to do with housing them in Fintronics, and also technology and the new generation wireless ATM's. Why install old technology when you're going to have to replace them almost as soon as they are installed?
Either way, 5,000 plus 7,000 equals tantalising stuff, without adding in any more thousands from the wider region, and organic growth closer to home in NZ/OZ. A share consolidation is still on the cards, probably something as severe as 1:5, if not more, especially if they were to buy Cashcard as some are suggesting. That being the case, current prices are a bargain and represent a great opportunity to have enough to make a difference when the time comes.
My opinion, for what it's worth, is that Customers will be one of the great growth stories of '08 and beyond and now is not the time to be getting frustrated with the time it's taken to hit a home run. Or two.
CUS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
