RE:Macs Shell BMOI don't think anyone wrote that winning business is a negative. The problem is, DCI hasn't been doing enough internal 'winning' over the past few years.
The Shell/BMO is a positive for sure, however, when it was announced, it wasn't made clear to the many who are non-industry insiders that that particular type of deal is low margin compared to DCI's traditional business model. As well, in an underhanded way, they failed to mention the loss of the Target locations that were occuring at the same time as the Shell/BMO deal...essentially, one offsetting another.
As far as Mac's, I don't have the physical contract in front of me, but I'm not far off on my numbers. As these ATMs were full placement, for Mac's to earn $1.25+/- per transaction would have certainly been above average. (I calculated both surcharge and interchange). Although DCI may say there were 'excited' about the gain for the Exchange Network, you better believe the loss of the Mac's locations were like a punch to the gut.
Bottom line is, DCI generates fantastic revenue, but, in the absence of new acquisitions, that revenue is declining. EBIDTA has dropped over four consecutive quarters, despite some minor acquisitions. Institutional investors looking into the long term are correct in being concerned over a possible dividend cut, as it's easy to do, and DCI would be much stronger if its debt were cut in half.....Not that I think a cut is going to happen anytime soon, but it would be a prudent move.
That said, I didn't think DCI would drop to these levels, and even I am looking to buy back in if it drops below $10.