Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, universal transaction system provider Net 1 UEPS Technologies
With that in mind, let's take a closer look at Net 1's business and see what CAPS investors are saying about the stock right now.
Net 1 facts
|Headquarters (Founded)||Johannesburg, South Africa (1989)|
|Market Cap||$394.1 million|
|Trailing-12-Month Revenue||$294.28 million|
CEO Dr. Serge Belamant (since 2000)
CFO Herman Kotze (since 2004)
|Return on Equity (Average, Past 3 Years)||20.1%|
|Cash/Debt||$71.4 million / $120.7 million|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Just last month, Pennyperson urged Fools to pounce on Net 1's severely slumping stock price: "Undervalued and time to pull the trigger. Like the lady on the Progressive Insurance commercial -- you have to yell DISCOUNT!"
In fact, Net 1 currently sports a paltry forward P/E of 5.2. That represents a clear discount to competitors American Express (11.3), MasterCard (13.6), and Visa (13.6).
CAPS member London2485 elaborates on the bargain opportunity:
I predict Net 1 will become increasingly globalized as they get squeezed by the South African government. They have already expanded into Korea and Iraq (Iran? can't remember), and my guess is they look to continue their global influence as South Africa gets stingier with their contracts.
The company has a healthy history, with the only catalyst for their precipitous downturn being the South African government. While they ARE the biggest client of [Net 1], the company appears to be in the process of adjusting and responding appropriately.
Insiders shed the stock in early 2010 after the SA squeeze. They've yet to reinvest. Now may be the time to jump into the stock if you are behind the profile.
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