TSN is extremely undervalued at current price on TSi metrics alone, page-6

Hi FTTT,

Thanks for sharing your thoughts.

Few minor points...

You wrote (see in italics);

200 Mobile Kiosks with replacement value of $30M - TSN May, 2015 presentation - http://www.asx.com.au/asxpdf/20150515/pdf/42yl8x4cqbsnp7.pdf - page 4.

That was the existing fleet prior to the July 2015 new contract win of 200 E-Kiosks. We now have a total of 400 Bill Payment Machines. What does that replacement value increase to now? Double that amount?

$170M USD was the suggested figure - page 4 TSN annual report -http://www.asx.com.au/asxpdf/20150731/pdf/4306zrxry6xmb1.pdf - divide by 8,000 - $21,250 USD per ATM.

Correction. The company highlighted that the whilst payment consideration was not 100% known it was believed to be in excess of $175M USD - page 4 TSN annual report -http://www.asx.com.au/asxpdf/20150731/pdf/4306zrxry6xmb1.pdf

FTTT, how did you come up with that figure of $13,000-$14,000 per ATM machine?

Here's a previous post of mine on the topic of 'cost per machine'.

http://hotcopper.com.au/threads/bill-payment-terminals.2557412/page-3?post_id=15676327#.ViwvrrcrLIU

My preference as you know has been (in this order)....

1. For the company to be successful with winning agreements with new small to mid sized banks to manage their ATM fleets. Little outlay & little time.

2. Win more Bill Payment/Kiosk contracts. Not as expensive as ATMs, much quicker deployment and very good margins. Remember in the 2007 Annual Report the company highlighted that they were collecting approximately AUD $0.15c per transaction from their iPAY Bill Payment Machines. That was eight years ago! Based on previous Operation Updates that figure appears to be approximately AUD $0.20c today.

3. To buy new small to mid sized banks ATM fleets, transaction volume & revenue for both points 3 & 4 that I have highlighted here should be immediate.

4. Win a few more ATM contracts at some stage this year, the earlier the better imo as ATMs take time to come online as well as gain traction.

Still sticking with my fair valuation of 8c to 10c NOW based on what is online today.

Tony