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| Diebold
- A Big Mac Quarter? Independent Buy-Side Research By The-Adviser.com - |
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SERVICES WHY US |
(Analyst
is MD Porcelain) 10/16/00 New
York - Diebold continues to hold its presence in the US ATM
market.
Diebold recently announced that it had entered into a deal with McDonald's Corporation to place automated teller machines (ATMs) in various McDonald's restaurants across the United States. Under this deal, Diebold will install and operate a cash dispenser in McDonald's locations which allows restaurant staff to load and recycle cash without accessing the chest of the unit by depositing money directly into the ATM by way of a bill acceptor. In return, McDonald's will pay Diebold a monthly fee for the installation and maintenance of the ATMs. The customer will be charged a per transaction fee a portion of which will be donated to the Ronald McDonald House. We believe the deal is exciting because it represents another outlet and business model for the placement of ATM machines. Diebold had increased from $22 to $28 since our original report in December of 1999 before dropping to its recent price of $24 as the market corrected. We continue to recommend Diebold based on the following investment themes: 1) Diebold is trading at earnings expectations. The stock currently trades at 12x EPS estimates which is BELOW its 16% 10 year compound annual growth rate, 2) The stock pays a dividend yield of 2.6% and has room for the upside, 3) new trends toward value based growth stocks should focus increased attention to Diebold. We have lowered our Q3 estimates by a penny to reflect a stronger US dollar and weak EURO. We expect Q3 results to be strong. Our EPS Estimates are as follows:
Click here for a current price quote on Diebold About Us ___________________________________________ Note: The Company does not earn fees for investment recommendations or referrals. Our research reports are prepared for general circulation and are circulated for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. The Independent Adviser Corporation, its affiliates, directors, officers, employees and employee benefit programs may have a long or short position in any securities of an issuer or in related investments. Please read our full disclosures by clicking here. |
We like the 2.6% dividend payment and continued international expansion.
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