Updates

Optimal Payments - Two eps enhancing acquisitions

August 2014

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

The shares soared after Optimal announced two California-based acquisitions, which were bigger and more eps enhancing than analysts had expected. Larger of the two was Meritus, an online payments processor serving over 8,000 small and medium sized merchants using a largely automated, proprietary trading platform, which generated US$3bn of transactions last year. Meritus, which cost US$210m (including US$150m cash and US$60m in shares issued in equal tranches over four years), almost doubled turnover from US$38.3m to US$74.4m in the year ended 31 December 2013, thanks to a 55% jump in volumes, while underlying EBITDA jumped from US$6m to US$13m. Smaller of the two is GMA, which helps merchants find suitable acquiring bank re ...

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Optimal Payments - Shares soar after acquisition of Skrill (May 2015)

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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