What you say is exactly what I was thinking. The naysayers, who are not shareholders are saying that if the company looses the Best Bank portfolio, it's curtains for this company, that's just not true. If they loose the portfolio, it will hurt, but they will find business elsewhere, from the new contracts signed with the Greater Nevada Credit Bureau, Millenium, Platinum, Check Cashing stores to name just a few. So what happens after they download all the customer base, send out the cards and start to process these accounts? Remember, in this business, it is labor intensive on the front side, which is where they are right now with the above mentioned programs. Do you think their revenues will go up after they are out of their beta testing trials? Do you think that being Y2k compliant, they may be able to pick up any new business because some smaller banks will have to spend too much money to comply? CLCK uses the most up to date and certified Y2K compliant data processing system from Paysys. To show you how one of their largest competitor is struggling with this problem, go to the Y2k discussions on First Data's latest 10-Q, where they state among other things that they have already spent $83 million through Sept of 1998 and expect to spend between $80and $95 million in 1999 and not even get rid of the problem! Here's an exerpt from that report that I feel all should read:Not withstanding, these efforts, unexpected third party failures could occur and despite testing procedures, erroneous or corrupted data received from third parties could impact internal systems and cause material service disruptions.
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Kevin |
