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Author: arc1 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 14  
Subject: Some good write up on this stock Date: 6/26/1999 6:29 PM
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Found this interveiw at the SI and it looks very interesting for the long run and the prospect of this company and also once the earnings are realized. Still on the process of learning this one but good write up.
arc1


Casey Stern of the Starr Securities provides the following stock idea on Cash Technologies (CHNG 11 1/8). Below is the write up.


Since ATM's (automated teller machines) made their debut 30 years ago, their main role to dispense cash has not really changed. Cash Technologies Inc. (CTI) is on the verge of changing the way ATM's operate.

"It is a very exciting company!," says analyst Casey Stern of Starr Securities. He explains that CTI develops and markets innovative e-commerce kiosks and systems. They have partnered up with some of the largest players in the e-commerce arena because of its EMMA (e-commerce message management architecture) technology. EMMA permits seamless interfacing of the four main channels through which trillions of dollars are transacted each year. EMMA will allow for new ATM Internet transactions because it lets; the ATM Network, the credit card (POS) network, the automated clearing house (ACH) network and cash, to all be accessed quickly and securely.

CTI announced that they had entered into an agreement with Sensar Inc. Sensar makes high security iris identification products like IriScan that will most likely be the standard on ATMs. Citibank, NCR, JP Morgan, Lehman Bros. and Merrill Lynch's wholly-owned subsidiary KECALP, made a $28 million dollar investment in the IriScan technology in November 1998. IriScan will identify a person using an ATM by the retina in their eye. This will eventually eliminate the need for ATM cards. "The combination of Cash Tech's EMMA host platform and Sensar's IriScan will not only make PINS and passwords obsolete but will allow for secure online credit card transactions from an ATM machine," says Casey. "For the first time, e-commerce merchants will be able to accept secure ATM card payments, instantly debiting the checking or savings account. Cash Tech's partnership with Sensar in itself will provide the next and finally secure step in online payment technology."

He thinks their shares can hit the mid 20's in a year

CTI recently announced partnership deals with Checkfree Holdings and Concord EFS, both industry leaders in electronic processing and e-commerce. CTI's EMMA will provide the first implementation of Checkfree's bill payment platform on an ATM, and the partnership with Concord provides the gateway for authorizing traditional financial and payment transactions over the Internet.

Casey figures Cash Technologies will post a loss of $1.45 this fiscal year ending May of 99' with revenues north of $50 million. He then sees revenues increasing to $65 million in fiscal 00' with earnings of $0.90 per share. In 01', he believes revenues will start to ramp up in the $120 million range, with earnings exploding to $4 per share. He thinks their shares can hit the mid 20's in a year. "Once earnings are realized, I think their stock could eventually trade in the $70 to $100 range."

(There is a thread that discusses CHNG on SI. Click here to go there.)
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