Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
A key to CASS growth long term is expanding the extent of offerings and expanding the customer base. From the latest 10-Q:

"Currently, management views Cass' major opportunity and challenge as the continued expansion of its payment and information processing service offerings and customer base. Management intends to accomplish this by maintaining the Company's lead in applied technology, which, when combined with the security and processing controls of the Bank, makes Cass unique in the industry. This trend has been positive over the past years and management anticipates that this
should continue in 2006."

Third Quarter of 2006 compared to Third Quarter of 2005:

"Freight transaction volume for the Third Quarter of 2006 increased mainly due to increased activity with existing accounts and a growing customer base. Total dollar volume processed by this division also increased during this period due to the increased activity and larger average freight charges. The increase in transaction and dollar volume from utility transactions increased primarily due to new customers as the growth of this division continues. These increases in transaction volume, combined with the expansion of the customer base in the
telecom division, drove the 13% increase in processing fees."

As I commented the current Q is likely to see some slowing in number of transactions from the existing customer base due to a softer overall economy. But long term what we want to see is continued increase in the number of customer using CASS systems and also further increase in the extent of services offered. My belief is CASS still has plenty of growth opportunities along those lines.

The recent price weakness got me to put in a buy order today. It did not fill, but I will look for chances here to nibble. There has been no signficant insider selling (one sell by Harry Krieg on 11/14, a couple of small buys by W. Grace earlier in Nov.)

sw


Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.