A2B - A2B Australia

[ROE]

Re: CAB - Cabcharge Australian

Anyone know what proportion of CAB's revenue and/or earnings come from payments as opposed to other services like taxi finance, taxi insurance etc.?

Will new methods of payment like using iPhones threaten CAB's infrastructure?

Will the EFTPOS machine become obsolete if payments can be made for free with an iPhone app?

Chequebooks, coins, notes, credit/debt cards a thing of the past?

Just playing devil's advocate here, not owning CAB at present.

Coins and Notes will still exist in some form
far from the dead of credit card, it will grow at a faster fast in place of cash.

Despite all the advance, credit card still the best and very convenient way to pay for most things

I got CBA pay tag on my iPhone and all other form of electronic payment, after a while
I find it a bit of a hassle and reverse to credit card ...

much easier to pull out the plastic card, than fumble through the iPhone or fire up the apps and then half of
the time it doesn't work as well as the credit card and when it does it limit your purchase to $100
so you have to use credit card anyway if it is above $100 bucks.

after a while it is just too much hassle and I just going back using credit card.
these stuff are nice to have in an emergency but for day to day I just pull out the credit card.

Anything is possible but at this stage lot of noises but I don't see it make much of an impact
on CAB, those who think it will are jumping the gun and don't understand CAB business that well.

5% regulation has much more impact but then again it not just CAB everyone else get hits as well
as I mentioned earlier maybe blessing in disguise.

According to the expert at morningstar analyst CAB has absolutely no moat whatsoever so they say sell away

 

[galumay]

Apple's iWallet will be a massive gamechanger, it is typically Apple, others have fiddled around the edges with half arsed NFS systems, despite consumer critisism Apple waited until they had nailed it and then released it.

Its a whole new ball game, its super secure, much better than physical credit cards, and will take over where ever you currently use a credit card.

It will take a while to filter through to all payment points obviously, and I have no idea what abilty CAB will have to negotiate a fee for use like they currently do for credit cards, but I suspect this may be a bigger threat than legislation or Uber.

 

[piggybank]

Up just over 7% today on no news released to the market - any idea(s) why?

Cheers
PB

 

[galumay]

Up just over 7% today on no news released to the market - any idea(s) why?

Cheers
PB

No, but there has been a LOT of support for CAB lately, something unfolding i guess.

 

[ROE]

Up just over 7% today on no news released to the market - any idea(s) why?

Cheers
PB

Maybe a take over target from their Singaporean friends
They virtually own half of Asia public bus and taxi transport and they have a large stake in CAB

just speculating, decent volume up 7% something has to be brewing and 10c Div still coming in 2 weeks

 

[TPI]

Re: CAB - Cabcharge Australian

Anything is possible but at this stage lot of noises but I don't see it make much of an impact
on CAB, those who think it will are jumping the gun and don't understand CAB business that well.

5% regulation has much more impact but then again it not just CAB everyone else get hits as well
as I mentioned earlier maybe blessing in disguise.

According to the expert at morningstar analyst CAB has absolutely no moat whatsoever so they say sell away

Fair points ROE, regardless of the method of payment CAB may still be able to take advantage, exactly how it pans out is perhaps too early to tell.

 

[TPI]

Apple's iWallet will be a massive gamechanger, it is typically Apple, others have fiddled around the edges with half arsed NFS systems, despite consumer critisism Apple waited until they had nailed it and then released it.

Its a whole new ball game, its super secure, much better than physical credit cards, and will take over where ever you currently use a credit card.

This was my initial feeling too, but widespread adoption might take some time.

Here is an interesting article on Apple Pay and near field communication (NFC) technology:

http://www.forbes.com/sites/stevenb...ay-is-doomed-unless-it-can-do-these-7-things/

I think payments is an area where there maybe disruption with technological innovation, so something to be mindful of.

Others have failed in this area, so it will be interesting to see how well Apple executes on this.

 

[ROE]

at of the day you got to make a judgement call on the business and if you not comfortable owning it then don't
stock market has lot of noises and it is important you have enough knowledge to counter these noises and be your own man...listening to someone else could be costly including me..

this is one of the report on CAB post about a week or so ago and if you just follow these noises you would have missed out 10% run after that.

“We rate Cabcharge as a no-moat company with high fair value uncertainty.”
Morningstar’s “no-moat” classification means the company returns will gravitate towards its cost of capital more quickly than company with “moats”.

for at least 2 years now everyone call CAB worth in their $2 or $3 but it refuses to trade any where near that level all that time ....

 

[ROE]

This was my initial feeling too, but widespread adoption might take some time.

Here is an interesting article on Apple Pay and near field communication (NFC) technology:

http://www.forbes.com/sites/stevenb...ay-is-doomed-unless-it-can-do-these-7-things/

I think payments is an area where there maybe disruption with technological innovation, so something to be mindful of.

Others have failed in this area, so it will be interesting to see how well Apple executes on this.

I like Apple products and I have lot of their products but this is something where they just be another payment guy in a crowded market.

what they doing is similar to paypal, what apple can comes up paypal can do the same with their paypal apps..

Paypal is pretty good where they lack other features are not them per say but they limit by the hardware available... if Apple comes up with NFC and embed chips and all the other stuff in their phone, paypal can easily make use of those new technology via their apps

it can use the same API call as Apple and paypal already has a foothold, most people are already on paypal and they just end up using paypal unless apple offer something remarkably better or some sort of freebie I cant see them upsetting the existing guy like paypal

 

[McLovin]

The base case for me is that in ten year's time CAB's payment business will be very different. As is the incumbent they have a natural advantage however new technology has shown over and over again to be the worst enemy of the entrenched rent seeker. I have little confidence in CAB's ability to adapt. Maybe I'll be wrong. I'm happy to watch from the sidelines.

 

[TikoMike]

The base case for me is that in ten year's time CAB's payment business will be very different. As is the incumbent they have a natural advantage however new technology has shown over and over again to be the worst enemy of the entrenched rent seeker. I have little confidence in CAB's ability to adapt. Maybe I'll be wrong. I'm happy to watch from the sidelines.

Not to put you on the spot McLovin, but do you have any specific examples to elaborate your point on "rent seekers" being done over and over again?

 

[McLovin]

Not to put you on the spot McLovin, but do you have any specific examples to elaborate your point on "rent seekers"?

Rent seeking was probably not the best choice of words. Although I think CAB earns rent, I was thinking more along the lines of the lazy, un-innovative incumbent. FXJ is the one that comes straight to mind and guys like Uber are far better funded than SEK, REA or CRZ were in their start up days.

Think about it this way, virtually everyone who uses Uber uses it because they like the product, no one uses CAB for any other reason than there is no other option.

 

[TPI]

at of the day you got to make a judgement call on the business and if you not comfortable owning it then don't
stock market has lot of noises and it is important you have enough knowledge to counter these noises and be your own man...listening to someone else could be costly including me.

Yes well said, not enough knowledge and reading too many opinions... a dangerous combination!

I am still learning this - just need more spare time to build the knowledge part .

 

[TikoMike]

Rent seeking was probably not the best choice of words. Although I think CAB earns rent, I was thinking more along the lines of the lazy, un-innovative incumbent. FXJ is the one that comes straight to mind and guys like Uber are far better funded than SEK, REA or CRZ were in their start up days.

Think about it this way, virtually everyone who uses Uber uses it because they like the product, no one uses CAB for any other reason than there is no other option.

I disagree that they had no choice, people have always had a choice even before Uber. ie cash. I wouldn't label CAB as being lazy given how they have been changing their existing products and diversifying into other transport areas. Kind of like saying Coca-cola are lazy for selling the same products for the last 100 years.

 

[McLovin]

I disagree that they had no choice, people have always had a choice even before Uber. ie cash. I wouldn't label CAB as being lazy given how they have been changing their existing products and diversifying into other transport areas. Kind of like saying Coca-cola are lazy for selling the same products for the last 100 years.

Find me a company that prefers its employees to pay cash rather than use a credit card.

As for diversifying, the economics of a bus company are very different to those of their payment system. I'm sitting in an airport about to get on a flight but from memory, CAB's bus venture has about $1b in assets and generates the same EBIT as their taxi/payment service which has about $250m in assets.

 

[TikoMike]

Find me a company that prefers its employees to pay cash rather than use a credit card.

As for diversifying, the economics of a bus company are very different to those of their payment system. I'm sitting in an airport about to get on a flight but from memory, CAB's bus venture has about $1b in assets and generates the same EBIT as their taxi/payment service which has about $250m in assets.

If the company "prefers" then how is that forced? Not trying to start arguments but sorry that's an oxymoron if I have ever seen one.

Economics is now a different subject, I was addressing your accusation of them being lazy and un-innovative.

 

[galumay]

it can use the same API call as Apple and paypal already has a foothold, most people are already on paypal and they just end up using paypal unless apple offer something remarkably better or some sort of freebie I cant see them upsetting the existing guy like paypal

Its a lot different to Paypal, as I said the implementation and security with iWallet is going to be a game changer, not just in the case of CAB, but across the board. There are good reasons Apple took so long to come to the market with NFS technology and its not about the reader, its all about the implementation, security and ease of use.

Its going to take a couple of years to take over, but I think people will be well advised to do some research and have a think about how it make affect our lives - and therefore our investments.

 

[prawn_86]

Its going to take a couple of years to take over, but I think people will be well advised to do some research and have a think about how it make affect our lives - and therefore our investments.

As someone with an Apple logo in their avatar you may be biased?

Android actually has a bigger market share than iOS, so if Apple only has 50% of the mobile market I don't see how it can 'take over'. It will likely be another product for Apple fanboys and something similar and possibly better could come along on Android

 

[VSntchr]

As someone with an Apple logo in their avatar you may be biased?

Android actually has a bigger market share than iOS, so if Apple only has 50% of the mobile market I don't see how it can 'take over'. It will likely be another product for Apple fanboys and something similar and possibly better could come along on Android

I agree.
Apple was a game changer with the iPod...because at the time the alternative was crap.
Payments is different, I like my physical wallet...and I don't wan't to ditch it...sure I may become a user of some sort of phone payment method - but I don't see it taking over completely, just an additional option for me.

 

[ROE]

Its a lot different to Paypal, as I said the implementation and security with iWallet is going to be a game changer, not just in the case of CAB, but across the board. There are good reasons Apple took so long to come to the market with NFS technology and its not about the reader, its all about the implementation, security and ease of use.

Its going to take a couple of years to take over, but I think people will be well advised to do some research and have a think about how it make affect our lives - and therefore our investments.

you just spruike the apple marketing crab before they even has anything to prove... iWallet was a massive failure
now they comes up with Apple Pay, just like they try Ping in itunes to get into facebook space...they failed that too and decommission that as well...They are good at making Phones and computer doesn't mean they are good in other area.

History will tell you, it is not easy to unseat the incumbent like paypal or other establishing system when that is
not your main business.

I know what Apple Pay is all about and it not that different from paypal
they still takes your credit card and you use use their payment system to pay

the way they implement them maybe difference but the process is EXACTLY the same.

Let just say when it comes to IT security I know a fair bit.

and Apple security crap, no better than paypal, in fact Apple security is much weaker until they got hacked recently
(not the nude picture) even the hacked before that where hacker start using other people Apple ID to buy stuff.

I never put my credit card in AppleID account I always use itune prepaid card because I know its weakness.

who would think Apple doesn't encourage or enforce 2 factor authentications until recently, I been using paypal 2 factor authentications for yonks now.

but again no system is 100% secure, the nature of the beast is that someone, somewhere, will stuffed up
and it is a race against time with hackers and system owner who ever get to exploited or closed the loop up first.

I am not anti Apple I just dont get emotionally attached to stuff like most people... I give credit where credit due ... I love Apple products, I got their Phones, iPods and their Computers.
but when it comes to payment my choice currently is paypal and credit card nothing else.

when and if Apple did something really awesome with payment I adopt what is good and benefits me.