Monday, February 22, 2016

Seeking Alpha: PAX Global Technology Looking To Swipe U.S. Market Share

PAX Global Technology (0327.HK) (OTC:PXGYF) ("PAX") has had a rough go of it since May of 2015 when I last wrote about the company. While the company has more or less kept to its plan of driving growth in China and emerging markets like Brazil and prepping for a major entry into the U.S., the stock has been hit by worries about those emerging markets, weakness in Chinese/Hong Kong stocks in general, and some company-specific competitive and performance worries.

By no means is this a safe stock, but I believe it is an undervalued growth opportunity that is going to start seeing meaningful growth in the large U.S. point of sale (or POS) terminal market in 2016. While I don't think PAX will unseat VeriFone (NYSE:PAY) or Ingenico (OTCPK:INGIY) in the U.S. or Western Europe, I believe the company has established a strong beachhead in faster-growing markets like Brazil and China. These shares seem to react to every hint of news about competitive product introductions, but I believe the shares are more than 25% undervalued on the basis of long-term high-teens annualized FCF growth.

While there is an ADR listing in the U.S., the volume is pretty much non-existent. Many of the better brokers now handle international trades (and at reasonable commissions), and I would strongly recommend going with the Hong Kong shares if that is an option.

Keep reading here:
PAX Global Technology Looking To Swipe U.S. Market Share

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