Hi everyone.Just wanted to comment on CAB. I think this stock is...

Hi everyone.

Just wanted to comment on CAB. I think this stock is in for some declining revenue into the future.

1) ACCC case - shareholders AND management seem totally in the dark as to the progress of this. The fine could be millions of dollars. They have made no provision as to the paying of this potential fine, and as such could impact the dividend going forward which will directly damage the share price. Questions being asked in parliament and growing political intervention is a large risk.

2) Market share being eroded by easy entrants into the marketplace, where taxi drivers are taking up new EFTPOS machines nearly everytime I go into a cab... they have the cabcharge one and usually another, smaller eftpos. The other systems the drivers tell me offer kickbacks to them for their use, where as cabcharge doesnt; I understand the other company's market shares are increasing...

3) Foray into foreign cabs seem to be underperforming.

4) Dividend (% of NPAT) could be larger.

DYOR