Author Archive

Home »

The Durbin-Related Threat of Direct-Routing to Visa and Opportunity for FIS, ACIW, VNTV

“Rewards cards could crater tomorrow … and [the volumes] move over to the debit or charge card side”, Phil Heasley, Chairman of Visa 1996-2003 and current CEO ACIW, June 2014 In 2015, we expect large issuers (with the top-5 controlling

Read More

Worst Kept Secret on Wall Street – RAI Buys LO

In a deal that is likely not a surprise to anyone, Reynolds American (RAI) this morning announced that it would be acquiring Lorillard (LO) for ~$69 per share in cash and RAI stock; The complexity of the deal shows us

Read More

The Collateral Plays on EMV – FIS, VNTV, NCR, NXPI

“It is very clear that card issuers like Capital One need to have our US customer base by the latter part of 2015 on a chip basis ….. but I have a feeling by the time we have all invested

Read More

Maybe It Wasn’t Just the Weather?

Earlier in the week, Wal-Mart US President and CEO, Bill Simon, suggested that the U.S. economy had “reached a point where it’s not getting any better but it’s not getting any worse – at least for the middle (class) and

Read More

Quick Thoughts: The Signal from the Rate-Markets on 2015 Margin-Lift for Large Banks is Deafening

With 6-month Libor (6ML) at just over 30 basis points, the deposit franchises of US Commercial banks are contributing next-to-nothing to net interest margins; specifically, we estimate deposit franchises contributed less than 10 basis points to aggregate net interest margins

Read More

ADM and the M&A Carousel

This morning, ADM hopped on the M&A carousel and announced that it was acquiring WILD Flavors GmbH for approximately $3.0 billion.  WILD is a peer to companies such as International Flavors and Fragrances (IFF) and Givaudan, producing flavors and taste

Read More

Quick Thoughts – Employment Trends

We don’t like reporting the news, but will happily follow on with a perspective that we think may be getting lost or ignored – in this case, the non-farm payroll numbers released this morning The headline number was unquestionably positive,

Read More

Quick Thoughts – STZ Q1 Earnings

With the stock up solidly this morning we suspect that there won’t be any shortage of cheerleaders offering commentary on the company’s earnings release – the company reported Q1 EPS of $1.07 versus consensus of $0.93. We believe that certain

Read More

Quick Thoughts – Construction Spending

Some interesting data on construction spending emerged from this morning’s release from the Census Bureau; We focus on private construction spending, rather than total (obviously, total less public = private) as private tends to be more volatile and more revealing

Read More

Quick Note – Barclays: Dark Pool Allegations Shocking, but Stock Trades with Substantial Margin of Safety

The NY AG’s complaint against Barclays around alleged fraud and deceit in the operation and marketing of its dark pool is shocking, and the 5% decline in the stock price since the filing shaves GBP2bn of market cap. The central

Read More
test