Please ensure Javascript is enabled for purposes of website accessibility

Why VeriFone Systems Shares Jumped

By Evan Niu, CFA - Apr 23, 2013 at 3:08PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is this meaningful, or just another movement?

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of VeriFone Systems (PAY) have jumped today, up by 13% at the high, after the company announced it scored a lucrative contract.

So what: VeriFone said it was awarded a two-year contract to provide managed services to payment systems in China operated by ChinaPnR. The Chinese company is outsourcing the management of services to VeriFone due to the complexity of the devices, which will allow ChinaPnR to concentrate on its core business.

Now what: Throughout the course of the contract, VeriFone will provide installation, training, and maintenance services and expand its relationship with ChinaPnR, which processes hundreds of billions of yuan annually of payments to numerous industries. VeriFone cites statistics from the People's Bank of China, which estimates that point-of-sale systems have grown by 43%, or 7.1 million, over the past six years, with 3.5 billion bank cards currently in circulation.

Interested in more info on VeriFone Systems? Add it to your watchlist by clicking here.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

VeriFone Systems, Inc. Stock Quote
VeriFone Systems, Inc.
PAY

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
345%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.