RE:RE:RE:RE:Accounting Alert: Cash Out of Direct CashNothing incorrect? So the price of the stock today is $10.50 and the dividend has decreased?
Veritas was absolutely wrong about the importance of the cashstore to DCI; their predictions of the amount of EBITDA coming from CSF was significantly overstated.
Negative sentiment can hang around for a long time but in the long term DCI will be judged by their earnings reports and not analyst reports. I absolutely think this stock with reach $20 again, it trades at only 3.8x cashflow and it should trade at 5-6x at minimum. It is still being viewed as risky when the CSF story has already played out.
The idea that cash is going to dry up tomorrow is not realistic. In 2008 a study indicated that they size of the underground economy in Canada was 24 billion dollars. They don't accept plastic.
Look at this recent article from Austrialia "cash is still king".
https://www.news.com.au/finance/money/rba-says-australians-are-addicted-to-cash-despite-the-rise-in-credit-card-usage/story-fnagkbpv-1227078186307
The whole long term thesis against DCI is not really backed up by recent evidence in the land down under.