Stargroup’s Super September continues
Published 13-SEP-2016 15:49 P.M.
|
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
The last two weeks has been a stellar period for financial technology company, StarGroup (ASX: STL). STL is the only ASX listed company deploying ATM machines in Australia and importantly, the only ATM group with a direct ownership interest in the manufacturer of its ATM technologies, namely NeeolCP, a South Korean private company.
While Tuesday morning’s news regarding the signing of a three-year ATM cash convenience agreement with Goldfields Money (ASX: GMY) is important in its own right, it is worth noting that this builds on significant developments in the last two weeks including an EFTPOS distribution agreement with West International (Sweden), an outstanding fiscal 2016 result featuring growth across all areas of its business, the achievement of record revenue for August and the listing of its ordinary shares on the Frankfurt Stock Exchange.
While the company’s shares bounced 10% during this period some of that gain has been lost during the broader market sell-off, suggesting that it may not be too late to take advantage of this positive news flow.
It should be noted that recent trading patterns are not an indication of potential share price performance and as such shouldn’t provide the basis for an investment decision.
With regard to the Goldfields Money agreement, the three-year/$15 million deal entails STL providing the group with its own state-of-the-art ATM machines to service customers in remote locations where major banks have withdrawn banking services.
As a backdrop, GMY is an Authorised Deposit Taking Institution (ADI) regulated by the Australian Prudential Regulation Authority (APRA). GMY is currently the only Western Australian based ASX listed ADI, and it is looking to become the digital bank of the future, focused on building the business around customers priorities through smart use of digital technologies.
STL’s chief executive, Todd Zani highlighted the importance of the deal saying, “This significantly reduces our cost of funds and is an excellent example of win/win business in that it represents a substantial cost saving over our present cash bailment arrangement and is also a diversification of income for Goldfields Money in relation to its present activities”.
The benefits of the relationship between the two groups is likely to extend further with management saying that it would be working closely with GMY on other financial products which will assist STL in becoming a key player in both the ‘cash out’ and ‘cash in’ cycle within Australia.
STL will install its ‘bank in a box’ Recycler ATM in GMY branches with the first installation scheduled for early October 2016.
General Information Only
This material has been prepared by StocksDigital. StocksDigital is an authorised representative (CAR 000433913) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573).
This material is general advice only and is not an offer for the purchase or sale of any financial product or service. The material is not intended to provide you with personal financial or tax advice and does not take into account your personal objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, StocksDigital, any of their related body corporates or any other person. To the maximum extent possible, 62C, StocksDigital, their related body corporates or any other person do not accept any liability for any statement in this material.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
