Why pay full price when you have got the software development & servicing contract at 'bargain' price?
Seen it all before.
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Whatever Macca's intention of investment in PLX was, its importance is that it has removed PLX's biggest risk which was to lose their biggest customer. Now with their biggest source of income hanging there stable and for longer, future is up to their development of technology and new customers to be signed up. In my opinion, they should be good enough to be valued at 90c at this moment. It is just a matter of favoured by the market or not....
Yup, they lost new potential customers in the fast-food restaurant industry but their customers have not been in this industry only such as Ikea and 7 Elevens. That's why I put the technology development before the new customers. Macca's investment could be beneficial to PLX's reputation as well.
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This needs to be explored. Have they released any fine print on the contract regarding restraint of trade to QSR? I assume this would include Shake Shack, Chipotle, Tac Bell etc. What about sub chains between 100-500 stores. The logo definitely helps. Look at the Maccs SP performance. Maccas leads in size, macro growth and increasingly innovation.
Preference is to sell the system to other QSR as that is a specialty however security of its largest customer and a full loyalty programme to be implemented means this could be a very large contract for PLX.
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I have always made my view very clear - PLX is a Backdoor job and I do not invest in backdoors.
Up to you and all the shareholders what you want to do! DYOR and I do wish you good luck - sincerely.
Last time sp hit 55c (Dec 2015/Jan 2016) :
• ACMR forecast to exceed $10m in next six to nine months.
• US presence expanded and relationship with Microsoft deepened.
What happened?
PLX up 23% in a week and still rising, the last weeks report must be taken seriously by investors, IMO this ins not a back door ramp now.