Michael Simpson, CFA DirectCash Payments Inc DCI-T COMMENT Aug 18, 2016

Has owned this in the past. Management continues to believe they can continue to pay the dividend yield of almost 12%. Payout ratio is very high, and the market doesn’t believe they are going to be able to continue to pay the 12%. This business is fairly tough and becoming more difficult all the time. It seems the company has been able to steady their numbers in the last couple of quarters. They’ll probably end up engineering the company so that it moves in a direction similar to something like what Davis Henderson (DH-T) did. At some point, they won’t be just ATMs, but will be in other areas as well. He would be fairly cautious on adding to your holdings.

(A Top Pick July 8/15. Up 13.98%.) An underowned name. ATM machines. Not a lot of analysts cover it. A stable business. Decent name for people looking for yield.

(Market Call Minute.) If it pulled back, it would be something he would look at.

Basically an ATM business for Canada, Australia and the UK. Just released results, which were decent. There was a little bit higher maintenance CapX in Australia as authorities had forced all ATMs to move towards EMB chips in the cards, so they had to upgrade their ATMs to make them compliant before the year-end. Payout ratio jumped up to 72% from FFO. Still a very cheap stock, trading at about 6.5X EV/EBITDA. A great, long term story. Dividend yield of about 11%.

(Top Pick Aug 26/15, Up 15.65%) It is still a very cheap stock. He recently sold a third because of the Brexit vote. It is paying a good, sustainable dividend. He is hoping to see organic growth in the next few quarters.

Being acquired at $19 per share. He sold his holdings at that price. The reason it is trading so close to the takeout price is that they are going to continue to pay the dividend until it is taken out. If you get taken out on the last day of January, you could potentially have an extra $0.48 coming in. You also defer capital gains until the next fiscal year.

In the process of being taken over. He had been short when it was announced. The ATM business is shrinking in Canada and around the world. It is an arbitrage situation at this point. He would not recommend buying more here. It is not a great business and there are not good chances of another bid here.

An interesting business. Part of him feels there might be some regulation coming to ATM fees and some of the charges their go through them. He would prefer other areas.

They have an offer from an industrial company to buy them out for cash. The share price is pretty close to the offer price.