This morning I added Global Payments (GPN) to the Barchart Van Meerten New High portfolio. They are a leading provider of electronic transaction processing services for consumers, merchants, Independent Sales Organizations, financial institutions, government agencies and multi- national corporations located throughout the United States, Canada, Latin America and Europe. Global Payments offers a comprehensive line of processing solutions for credit and debit cards, business-to-business purchasing cards, gift cards, electronic check conversion and check guarantee, verification and recovery, as well as terminal management. The company also provides consumer money transfer services from the U.S. and Europe to destinations in Latin America, Morocco, and the Philippines.
45% of the operations are outside the US and they are a leader in the Chinese markets. Just look at the tags saying "Made in China" and you get a feel of what possibilities lie in money transfers to Asia.
GPN is enjoying recent price momentum and has a 96% Barchart technical buy signal. The stock hit 17 new highs and is up 11.19% in the last month. The Relative Strength Index is 74.93% and rising. The stock trades around 45.65 which is well above its 50 day moving average of 41.27.
Wall Street brokerage analysts have noticed this Chinese connection and predict a revenue growth of 8.60% next year with earnings per share increasing 13.30% next year and continuing at a 5 year annual compounded EPS growth rate of 12.54%. I like double digit EPS growth rates. That has earned the stock 16 buy and 13 hold reports
The general investor over on Motley Fool votes 224 to 24 that the stock will beat the market and the All Stars agree 90 to 3. Fool notes that columnists articles have been positive 12 to 1.
The stock has what I look for:
1 - 96% Barchart technical buy signal
2 - 17 new highs and up 11.19% in the last month
3 - Wall Street buy recommendations based on 5 year double digit earnings projections
4 - Positive investor sentiment
Jim Van Meerten is an advisor to Marketocracy Capital Managementwho uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or emailJimVanMeerten@gmail.com.
Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.