Posts

Showing posts with the label Money transfer

IB Net Payout Yields Model

Xooming Money Transfer To Higher Margins

Small-cap Insight The recent 10-for-1 split announcement by MasterCard ( MA ) should highlight the extreme profitability of facilitating financial transactions around the world. In fact, the market appears desperate for lower fee, cross border alternatives with the sudden rise in popularity of the Bitcoin, yet for investors very few growth companies exist that offer the opportunity to participate in the internet and mobile financial transaction arena. The previous mentioned MasterCard and competitor Visa ( V ) have already reached market values around $100 billion and don't exactly offer new opportunities. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

An IPO Xooming Too High

On Friday, the IPO for the cash-transfer service provider Xoom, Inc. ( XOOM ) soared 59% after being priced above the initial range. After reading the final prospectus , the company harkens back to the technology IPOs of the late 1990s when a stock had as much hope as hype. The company is a global online money transfer provider, focused on helping consumers send money in a secure, fast, and cost-effective way using their mobile phone, tablet or computer. Xoom has 750,00 active customers that sent more than $3.2B to family and friends in 30 countries worldwide during 2012. With a revenue base of $80M, Xoom follows in the footsteps of the recent ExOne ( XONE ) IPO (see Does The ExOne IPO Offer Any Value? ) where the company was substantially smaller than companies going public over the last few years. Read the full article at Seeking Alpha. Disclosure: Long GSVC. Please review the disclaimer page for more details.