SUMMARY
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As much as 30-40% of Euronet’s profits and EBITDA are generated solely by DCC revenues with ultra high margins. The sell side has largely missed this entirely.
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During 2017, scathing public criticism erupted from a wide array of journalists, travel advisers and celebrity TV hosts, directly alleging Euronet “fraud”, “rips offs” and “scams” with DCC Evidence posted in photos, screenshots and videos.
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Multiple independent investigations then concluded specifically that “DCC should be banned”
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Following the public scrutiny, a wide range of Euronet insiders began aggressively dumping their shares (and just ahead of a key vote in November 2017 by the EU Parliament)
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Since then, EU legislation covering DCC has passed multiple key milestones.
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Final regulations are set to be passed by June 2018
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Euronet trades on a steep premium to peers because of perceived growth prospects. Any reassessment will see disproportionate downside to the share price
Submitted February 03, 2018 at 08:56AM by Lyman-Zerga http://ift.tt/2nDaabR
