Monday, February 20, 2017

Wirecard Seems Wired For Growth

Even though it's highly competitive, merchant acquiring and processing has been a lucrative business for companies ranging from Cielo (OTCQX:CIOXY) to Global Payments (NYSE:GPN) to U.S. Bancorp (NYSE:USB) to Worldpay (OTCPK:WPYGY). Wirecard (OTCPK:WCAGY) has been making its mark by attempting to establish itself as a leading acquirer, processor, and facilitator of global e-commerce, and the company has been reporting impressive revenue growth for some time.
Despite (and perhaps because of) that growth, though, Wirecard has been a controversial name.

Putting aside mudslinging from the cheap seats alleging all manner of wrongdoing at the company, there are legitimate complaints about the company's aggressive use and definitions with its balance sheet, earnings quality, and weak cash conversion. Transparency has improved, though, and more aggressive investors may well regard these risk factors as part of the price paid when you invest in complex high-growth stories. I don't necessarily see the shares as dramatically overvalued, the premium for the growth potential here seems quite reasonable and the bull-case scenarios lead to some appealing upside.

Read more here:
Wirecard Seems Wired For Growth

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