Stock Research Report for PAY as of 9/8/11 - Chaikin Power Tools

Page 1

Verifone Hldgs (PAY)

Price: $35.58

Industry: Computer Software-Services Chaikin Power Gauge Report | Generated: Thu Sep 08 17:08 EDT 2011 PAY

$35.58

Verifone Hldgs

Power Gauge Rating

PAY - Very Bearish TM

The Chaikin Power Gauge Rating for PAY is very bearish due to very poor financial metrics, bearish price/volume activity and negative expert opinions. PAY's financial metrics are very poor due to a high price to book value ratio and high price to sales ratio.

Financial Metrics

Earnings Performance

Price/Volume Activity

Expert Opinions

News Sentiment Rating

Very Bullish PAY Verifone Hldgs

September 07, 2011

TM

Chaikin Sentiment Gauge for PAY is very bullish. There is currently a very significant positive sentiment within news stories concerning PAY.

News Sentiment :Very Positive

Power Trend - 5 Year Chart

The Power Gauge distills a 20 factor model into a concise picture of a stock's potential.

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High Potential

Neutral

Low Potential

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Financials & Earnings

Financial Metrics

Financial Metrics Rating

Very Bearish

LT Debt/Equity Ratio

PAY's financial metrics are very poor. The company may be overvalued and has relatively low revenue per share.

Price to Book Value

The rank is based on a high price to book value ratio, high return on equity and high price to sales ratio.

Return on Equity

Price to Sales Ratio

Business Value

Assets and Liabilities

Valuation

Returns

Ratio

TTM

Ratio

TTM

Ratio

Current Ratio

3.08

Price/Book

7.54

Return on Invest

17.3%

LT Debt/Equity

2.27

Price/Sales

3.17

Return on Equity

52.2%

Earnings Performance

TTM

Earnings Performance Rating

Neutral

Earnings Growth

PAY's earnings performance has been neutral. The company experienced superior earnings growth in the past 12 months and is priced relatively high compared to next year's projected EPS.

Earnings Surprise

Earnings Trend

The rank is based on an upward trend in earnings this year, a relatively high projected P/E ratio and consistent earnings over the past 5 years.

Projected P/E Ratio

Earnings Consistency

5 Year Revenue and Earnings Growth

Revenue(M) Rev % Growth EPS EPS % Growth

EPS Estimates

10/06

10/07

10/08

10/09

10/10

581.07

902.89

921.93

844.71

1,001.54

19.72%

55.38%

2.11%

-8.38%

18.57%

$0.90

$-0.41

$-5.00

$-1.63

$1.16

57.89%

-145.56%

-1,119.51%

67.40%

171.17%

EPS Surprise

Factor

Actual EPS Prev

EST EPS Current

Change

$0.58

$0.40

-0.18

Quarterly EPS Yearly EPS Factor

$1.16

$1.55

+0.39

Actual EPS Growth

Est EPS Growth

Change

17.48%

21.67%

+4.19

3-5 year EPS

EPS Quarterly Results Estimate

Actual

Difference

% Difference

Latest Qtr

$0.40

$0.40

$0.00

0.00

1 Qtr Ago

$0.38

$0.38

$0.00

0.00

2 Qtr Ago

$0.33

$0.35

$0.02

6.06

3 Qtr Ago

$0.30

$0.33

$0.03

10.00

FY

Qtr 1

Qtr 2

Qtr 3

Qtr 4

Total

10/09

$-2.15

$0.22

$0.26

$0.04

$-1.63

10/10

$0.13

$0.24

$0.22

$0.58

$1.17

10/11

$0.37

$0.29

-

-

-

Fiscal Year End Month is October.

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Price Trend & Expert Opinions Price/Volume Activity

Price/Volume Activity Rating

Bearish

Relative Strength vs Market

Chaikin Money Flow

Price and volume activity for PAY is bearish. PAY has underperformed the S&P 500 over 26 weeks and has a declining price trend.

Price Trend

The rank for PAY is based on its relative weakness versus the market, positive Chaikin money flow, a negative Chaikin price trend, a positive Chaikin price trend ROC and a decreasing volume trend.

Price Trend ROC

Volume Trend

Relative Strength vs S&P500 Index

Chaikin Money Flow

Chart shows whether PAY is performing better or worse than the market.

Chaikin Money Flow analyzes supply and demand for a company's stock.

Price Activity

Price Activity

Factor

Value

Factor

52 Week High

56.84

% Change Price - 4 Weeks

52 Week Low

26.14

% Change Price - 24 Weeks

% Change YTD Rel S&P 500

-3.32%

Expert Opinions

2.42%

Average Volume 20 Days

2,471,960

-33.40%

Average Volume 90 Days

2,903,273

% Change Price - 4 Wks Rel to S&P

-4.23%

% Change Price - 24 Wks Rel to S&P

-27.91%

Value

Chaikin Money Flow Persistency

54%

Expert opinions about PAY are negative. Insiders are not net buyers of PAY's stock and PAY has been under-performing the Computer Software-Services industry over the past 13 weeks.

Insider Activity

The rank for PAY is based on analysts revising earnings estimates upward, a high short interest ratio, insiders not purchasing significant amounts of stock, optimistic analyst opinions and relative weakness of the stock versus the Computer Software-Services industry group.

Analyst Opinions

Relative Strength vs Industry

Earnings Estimate Revisions Current 0.40 0.46 Current Current FY

Factor

Bearish

Short Interest

Next Qtr

Value

Expert Opinions

Earnings Estimate Revisions

Current Qtr

Volume Activity

1.55

Analyst Recommendations

7 Days Ago % Change 0.41 0.47

-2.44% -2.13%

30 Days Ago % Change 1.53

0.02

Factor Mean this Week Mean Last Week

EPS Estimates Revision Summary Value

Buy 0.00

Mean 5 Weeks Ago

Buy

Last 4 Weeks

Down

Up

Down

Curr Qtr

0

1

1

1

Curr Yr

0

1

1

1

Next Qtr

0

1

0

1

Next Yr

2

0

2

1

Buy

Change

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Last Week Up

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The Company & Its Competitors

News Headlines for PAY

PAY's Competitors in Computer Software-Services Company

Power Gauge

Historic EPS growth

Projected EPS growth

Profit Margin

PEG

PE

Revenue(M)

17.48%

21.67%

11.24%

1.06

24.36

1,002

MSFT

9.84%

11.08%

33.10%

0.84

9.85

69,943

CA

3.31%

12.00%

18.64%

0.83

10.61

4,429

INTU

10.53%

14.00%

16.46%

1.30

21.80

3,851

ORCL

20.32%

15.00%

23.99%

0.80

13.03

35,622

SYMC

8.78%

9.00%

9.49%

1.26

13.37

6,190

SAP

10.55%

13.00%

14.45%

1.08

15.65

17,003

INFY

23.83%

16.80%

24.50%

1.02

18.47

6,041

PAY

Standard & Poor's Announces Change to U.S. Index - Sep 7, 2011 VeriFone, Hypercom complete merger - Aug 4, 2011 VeriFone to Acquire South Africa Payments Solutions Provider - May 24, 2011 VeriFone and MICROS First to Bring NFC Services to the Table - May 19, 2011 ViVOtech Ready, Willing, Able to Buy Hypercom U.S. Assets - May 13, 2011

Company Details

Company Profile

VERIFONE HLDGS 2099 GATEWAY PLACE SAN JOSE, CA 95110 USA Phone: (408) 232-7800 Fax: 312-279-1710 Website: http://http://www.verifone.com Full Time Employees: 2,565 Sector: Computer and Technology

Verifone Holdings, Inc., a global leader in secure electronic payment technologies, provides expertise, solutions and services for today with a migration strategy for tomorrow. VeriFone delivers solutions that add value to the point of sale, resulting in improved merchant retention and the generation of new sources of revenue for its partners and customers. VeriFone solutions are specifically designed to meet the needs of vertical markets including financial, retail, petroleum, government and healthcare.

Power Gauge Ratings are created using a relative ranking system that assigns a rank of 0 to 100 (100 being the highest) to each stock in the universe. Rank is calculated by evaluating each of the stocks factors and combining them into a single number using a weighting formula. A stock's rank ranges from 100-0, where 100 is the strongest, and a rank of 95 indicates the stock is better than 95% of the stocks in the universe. Chaikin Stock Research(CSR) is not registered as a securities broker dealer or investment advisor with either the U.S. Securities and Exchange Commission or with any state securities regulatory authority. CSR is not responsible for trades executed by users of this research report, our web site or mobile app based on the information included herein. The information presented in this report does not represent a recommendation to buy or sell stocks or any financial instrument nor is it intended as an endorsement of any security or investment. The information in this report is generic by nature and is not personalized to the specific financial situation of any individual. The user bears complete responsibility for their own investment research and should seek the advice of a qualified investment professional before making any investment decisions. Copyright (c) 1978-(Present) by ZACKS Investment Research, Inc ("ZACKS"). The information, data, analyses and opinions contained herein (1) includes the confidential and proprietary information of ZACKS, (2) may not be copied or redistributed, for any purpose, (3) does not constitute investment advice offered by ZACKS, (4) are provided solely for informational purposes, and (5) are not warranted or represented to be correct, complete, accurate or timely. ZACKS shall not be responsible for investment decisions, damages or other losses resulting from, or related to, use of this information, data, analyses or opinions. Past performance is no guarantee of future performance. ZACKS is not affiliated with Chaikin Power Tools. This report from Chaikin Power Tools is for informational purposes only and is not a recommendation to buy or sell securities.

LM 2.3 DS 3.0 LS 2.1

Data Provided by ZACKS Investment Research, Inc., www.zacks.com

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