Research Materials: PayPoint Long

The following are copies of materials for my research on PayPoint:

PayPoint Memo.pdf

Download PDF • 385KB

PayPoint Model.xlsx

Download XLSX • 74KB

The TLDR of the pitch is that PayPoint's recent sell off is unwarranted. The valuation makes this very appealing and the underlying business has multiple levers to pull in order to regain fundamental momentum. They're returning gobs of cash to shareholders through both dividends (7.5% yield) and buybacks (7% yield). I think this has a hard time not being a winner over the next 12 months from this point.

I've already taken this to 20% weight, and I don't anticipate that weight changing anytime soon unless the thesis is realized or something materially wrong happens that impairs the thesis.