Official account of Rome Capital, an investment firm focusing on small and mid-cap growth and special situation investments in Western public markets
Hong Kong
Joined October 2022
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Actually the concerns for the banks is how customers would think if they know the ATMs are outsourced, or if outsourcing would stop them from differentiating from an ATM angle. That’s more of a larger banks’ problem, and can be solved by outsourcing part of the fleet.
On compliance, the feedback we got from the banks is the regulations are getting more complicated so it’s easier to outsource to an expert than keeping it in-house, especially for smaller banks.
For capex, they believe majority of the units would be from asset-light model, ie the banks would keep the asset ownership. Therefore, the capex is manageable based on my model.
Kudos to Alta Fox team for the great work! We also believe $NATL is a significantly undervalued stock as market neglects its transformation to ATMaaS, recurring revenue and deleveraging opportunity. Please find our research on it here: alexfeng.substack.com/p/ncr-…
We just published a new high conviction idea $NATL. This neglected spinoff is trading at ~6x earnings and we believe can grow EPS ~30%/year over the next three years. We believe fair value is ~250% higher over the next ~3 years. View the idea here: altafoxcapital.com/research