NEW YORK -(Dow Jones)- Shares of Total System Services Inc. fell
another 5.5% Tuesday in what one analyst called a continuing correction
in the company's shares.
After sailing into the 30s last month, shares of Total System (TSS)
began to sink steadily at the beginning of April, and lost 6.6% on
Monday. Lawrence Hickey, analyst at First Analysis Securities Corp.,
said shares of the Columbus, Ga., credit and debit card processor got
too expensive relative to the company's earnings, and are now
correcting.
"It's a good performer," Hickey said. "They're running a good
business. It's just what will you pay for all that?
"The multiples got a little high for my comfort," Hickey said.
The NYSE-listed stock has traded at as much as 100 times earnings,
Hickey said.
The 52-week high for the shares was $44.625 on April 22, 1996,
exactly one year ago. Their 52-week low, reached last July, was $20.50.
By Tuesday afternoon, Total System shares were down $1.375 to $23.50
on heavy volume of 187,500 shares. Average daily volume for the company,
which is 80.8% owned by Synovus Financial Corp. (SNV), is 47,200 shares.
The thinly traded stock reportedly has a very loyal cadre of
shareholders near its Georgia base who help keep the share price up,
Hickey said. Recent sellers have included three large financial
institutions, traders said. |
