Q: Given the stock is trading at essentially the value it has in cash on hand, with no debt and a client base from which to grow and expand - do you see much risk in acquiring at this price and what upside do you foresee?
5i Research Answer:
We still see some risk here. PAY losing its DoorDash contract highlighted the concentration risk of the business. This was a rather unpredictable loss and if it were to further lose its Uber or Lyft contract as well then growth would be further hindered (although there are no signs that it will lose these contracts right now). We would want to wait to see how earnings fair and what comes out of the company's strategic review. Growth will certainly be in decline next year which is why it looks so cheap for a reason.