Diebold, Inc. (NYSE:DBD)
The Company is engaged primarily in the sale, manufacture, installation and service of automated self-service transaction systems, electronic and physical security products, election systems and software.
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China's buying.
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Financial Services industry is out of favor, helping to depress DBD. However, banks will continue to invest in new and upgraded ATMs around the globe. BAC alone has over 17,000 ATMS in their network....This looks like a value play with a decent margin of safety.
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Banks still have to keep updating security systems.
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atm's across the globe
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Real story is cost cutting. Restructuring of the manufacturing processes, order-to-cash cycle (increasing lead times), and supply chain . Significant upside.
75% of revenue derived from the Americas, International expansion should provide continued growth opp. Growth in the global ATM market will help drive future growth.
DBD will discontinue the use of bill and hold as a method of rev recognition in both its North America and international businesses. Change in accounting policy should help move SEC review forward
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Between now and the end of January is a good time to short this stock. Never buy this stock. Look to short now and whenever it gets between $ 47.00 and $ 50.00 for the next year or so.
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Diebold voting machines will get blame for some bugs etc. even though this only accounts for 6% of diebold's revenue.
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Company gets knocks for creating crappy voting machines and having a less than stellar management team. However the voting machine line of business is relatively minor and the management team has been virtually replaced since 2002.
Right now the company is a solid earnings machine printing cash with a dominant position in its primary market space.
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Its the election, man.
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This company has never delivered outsized return will continue to under deliver.
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Diebold has issue in management. Also the public is concerned with it's voting machines aqnd security. Machines perform well but any one glitch or hiccup will trash this stock. Dividend is excellent and the stock will come back down the road.
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