Good post, Paul. This is a patience situation. Who can say when the fuse will be lit? Or exactly what development will light it?
Accelerating revenues will help. Accelerating adoption rates at existing bank programs are a must. I noticed in a recent announcement that CKFR has experienced 10%+ quarter to quarter growth in "same store sales". These bank rollouts are still pretty young, and many must still be in pilot stage, Once the banks have confidence in their home banking offerings, they will pick up the marketing pace, and the sign on rates may pick up further.
A number of the recently signed banks are still in the development pipeline for full rollout. This will be a source of new growth, over and above the "same store" increases.
A few big, national names signing on for E-bill would help. How about a Sears, a JC Penney, an Allstate? The more, the better, obviously. E-Bill has the potential to be bundled in with all existing bank branded offerings (and pretty cheaply, I hope...haven't heard the proposed pricing). The money for CKFR from this service will mostly come from the billers. Need some announcements for this to influence the stock.
The following is a bit of speculation on my part:
Did you see that Fiserv tendered for BHC Financial last week? This is a third party marketer and back office brokerage clearing house for Banks offering brokerage services. The market liked it. Both Fiserv and BHC up on the deal.
Significance of this to CKFR? CKFR is currently the billpay solution offered to all Fiserv bank data processing accounts. If the BHC deal results in web brokerage being brought in, it seems likely that a bundled offering could be made to CKFR client banks of the BHC brokerage service. This is an additional service that CKFR has discussed, but has not included in any of their revenue forecasts.
Fiserv may be a good "big brother" for CKFR. Could take them to all the right parties....
Patience...
Brian |
