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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (16870)	4/16/2003 9:37:33 PM
From: Spekulatius	Read Replies (4) \| Respond to of 78526

Regional banks - I have been scanning for value stocks amongst regional banks. FMER, CNB, NCC UPC have been popping up on my value screen: Div % 4$ min, PE <11, P/B<2...My favorite is CNB but it has been rising a bit recently so I am waiting for a pullback. Does anybody here on the thread like/dislike any particular stock on my list? Is there an opinion on regional bank stocks in general?

To: Paul Senior who wrote (16870)	4/17/2003 12:12:06 AM
From: LauA	Respond to of 78526

Now that I look further, I see that POS doesn't do those coupon canisters. They own the checkout. They give register receipt coupons, track purchases with the loyalty cards, and do data mining on it. (They probably share the info with Tom Ridge.) They are in 17,000 stores reaching 210 million individuals and 17,000 pharmacies reaching 16 million households weekly. Their website claims 250 million weekly transactions at over 21,000 supermarkets worldwide. 100 million households logged in loyalty programs. 4.5 billion customized promotional messages yearly. It looks like they get some up front fees from the retailers to put their computers and thermal printers at the cash register. They cut deals with the manufacturers on exclusivity for product cycles. They may be nearing 'build out', so capital needs would decline. I'm concerned that revenue slowdown may be due to lessening upfront fees. Theoretically this should be a very profitable business with minor capital costs. If free cash flow approached cash flow, it would look very attractive. I'm assuming that the current quarter will sport a bigbath writeoff. They've been buying back shares. But they have lots of options outstanding (higher priced than current). Does anyone have better insight into the business model?