GPN
I have to be honest. I have no idea I listened to the CC. pretty much all the analyst were saying good job with the quarter, which it was.
Here are my theories of why and that is all they are:
1) Payment stocks are down because of the SQ news. Wouldn't concern me in the long run, I'm buying GPN, not SQ.
2) Technical selloff if you look at a chart once it broke the $120 level, It was gonna drop at least in the $110-115 range. There was no support for a while once it broke $120.
3) I could think of is maybe adjusted eps was only like 8% for the quarter, and maybe they were hoping for more, although even that seems crazy considering they beat analyst estimates. They are guiding for 11-12% overall, so maybe they didn't like the eps growth this quarter was less than 11-12%? Albeit Q1 was the strongest y/y quarter by a country mile last year, so the lesser growth y/y might of simply been a much tougher comp with growth on the eps front accelarating in the coming quarters, which I believe will happen, in fact that is what the company is guiding for.
Personally I think reasons #1 and #2 make more sense and neither of which bother me for my view of GPN is significantly undervalued. Time will tell. Although as of right now I was clearly too early with my purchase of GPN. All is just my opinion, and I could always be wrong though.
