Share this page!

Gabriel Castro, CFA Profile picture
Twitter logo
29 Oct, 5 tweets, 2 min read
Strong answer from Pax Global refusing all the fake claims. The business hasn't been damaged as clients feel comfortable with Pax devices. Moreover, Worldpay revenue is not significant (less than 0.5%). The stock will resume its trading next monday.

…ds1fxb0jchzgjph.blob.core.windows.net/press-releases…
I've checked with other source (not management) and at least from now, the business has not been impacted confirming management statement. Also, I had a word with Pax management and they are super confident in the business and can't wait to give more explanations on Monday
I really like Pax's answer. A normal Chinese company would either have remained silent or hardly report. Instead, Pax has issued a strong and detailed answer and is scheduling a conference call to answer shareholders' questions (the owners)
It doesn't seem like the FBI has found any evidence. It's been a couple of days and they hadn't raid more businesses, arrest people... You know, they inmediatly detained Huawei CFO
KrebsOnSecurit statements are based on a unrevealed but trusted source. Be aware Worldline is in the process of selling their POS business (Ingenico), a direct major competitor of Pax. Ingencio is rapidly losing market share against Pax. Look at what an analyst wrote this wed

• • •

Missing some Tweet in this thread? You can try to force a refresh
　

Keep Current with Gabriel Castro, CFA

Gabriel Castro, CFA Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @gabcasla

Gabriel Castro, CFA Profile picture
27 Oct
Update on Pax Global. The problem was ONLY with Worldpay. They asked some complex questions to the US region by email and considered the answer wasn't good enough and instead of insisting, they unilaterally decided to report to the authorities and move away
Worldpay isn't a big client (fewer than 5% of Worldpay clients currently use PAX). While they said they had no evidence that data running through PAX POS devices had been compromised, they decided to replace the POS

bloombergquint.com/business/fis-s…
The confusion lies in the geolocation feature and in the use of dynamic IP addresses. It might end up being a misunderstanding. Be aware that Worldline isn't reporting a security break. I have firsthand knowledge how reliable Pax terminals are
Read 5 tweets
Gabriel Castro, CFA Profile picture
27 Oct
My thoughts about Pax Global after talking with the company and other experts in the field.
You should be aware of the fact that the FBI and the DHS have registered only a warehouse from Pax in Florida so far. They looked for evidence about malicious software on Pax terminals
The authorities have not formally charged them, they were looking for evidences and it is super important to know that Pax (including the US region) is doing business as usual today. The US segment is working to deliver and maintain terminals as usual!
I'd be very surprised if Pax had done something illegal. The company doesn't have any relation with Chinese gov and the chinese business had been suffering for a long time. Pax was growing very fast in all geographies except in China and the clients were amazed with Pax product
Read 10 tweets
Gabriel Castro, CFA Profile picture
25 Sep
Great update from @agbrief on Nagacorp $3918. The chairman confirms NagaWorld is reopening! Cambodia plans to ease tourism restrictions from Nov. Management told us Naga will make $30M EBITDA/month very soon (3.5bn market cap). Exciting times coming!

agbrief.com/intelligence/f…
While VIP market will take a while to come back, we are super bullish on mass market prospects. We saw almost a full recovery early this year thanks to the influx of foreign capital and expatriates into Cambodia, especially its capital Phnom Penh. 1Q20 was all time high profits!
Mass market recovery will support much higher valuation. Amazing business (unique and well protected by a monopolistic license) with superb returns. Great company to play Asia gaming trend. The low cost, low tax advantages offer greater value for money to players
Read 4 tweets
Gabriel Castro, CFA Profile picture
24 Sep
Narrativa española:
"Obtener buenas rentabilidades con la renta fija es imposible", "La renta fija es fija", "clase de inversión para personas mayores", "Con los tipos actuales está garantizado perder dinero"

Realidad:
Nuestra inversión en renta fija +93% vs -9% la acción y +51%
Mañana nos amortizan el bono que compramos el año pasado generando una rentabilidad total del 93% incluyendo cupones. Destacar la diferencia entre el comportamiento de la acción en el mismo periodo (-9%). Analizamos las compañías y decidimos en que estructura tomar la posición
+93% en año y poco superando el +51% del S&P 500. ¿Mucho riesgo? Incorrecto! El papel esta colateralizado con una serie de tankers cuya valoración minimizaba el riesgo. Si la compañía no pagaba, el administrador liquidaba los activos rápidamente y recuperábamos nuestra inversión
Read 4 tweets
Gabriel Castro, CFA Profile picture
7 Sep
Nagacorp (3918 HK) is up 16% today but still 50% below its pre-Covid levels and 37% below Feb 21. Would you like to go back to March 2020 and buy high-quality assets at bargain prices? Then, this is your opportunity!

Summarized investment thesis:
slideshare.net/GabrielCastroC…
Credit to @GlobalStockPick who brought me the idea last year. You can find more info in his blog!
First time I heard about being the owner of a casino in Cambodia I fully rejected the idea as we're super conservative, but after more research we believe this is a compelling idea
Nagacorp is a unique business well protected by a monopolistic license until 2045 that benefits from the Asia growing and gambling structural trend. Operates in a low-cost and low-tax country that allows them to attract gamblers and generate outsized returns on invested capital
Read 5 tweets
Gabriel Castro, CFA Profile picture
18 Aug
My thoughts on Pax Global: Amazing results proving once again that the business isn't commodity generating 20% ROEs and >50% ROCEs.
Pax is leading the Android terminal transition with 35% total revenue coming from APOS and expected to be >70% in four years
APAC grew 23% despite COVID issues. India is the biggest country and Pax is the market leader. Paytm (supported by Alibaba) and Pinelabs (Pax customers) looking for IPO which would accelerate their growth. Do you remember the impact of Pagseguro and Stone IPOs on Pax in 2018?
Big customers asking for Pax solutions in Europe and USCA. Gaining market share to Ingenico and Verifone due to its superior product portfolio. I expect Pax keeping amazing growth for years. Pax market share is 10% and they plan to double it in the next 4 years (Ingenico 25%)
Read 12 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!

Like this author's thread?

Get emails when @gabcasla has new unrolls!

Check out other threads from @gabcasla!

Read all threads by @gabcasla

:(