Decent result continue to hold for dividend galore
I'm completely out today. Just a gut feel that it will continue lower.
Its been a great stock for me and i have loved the dividends, but i think there is more downside risk at the moment. The fact it was also my biggest holding means i need to do some re-balancing. Might look to re-enter below $4 if it gets there again.
Hefty credit card surcharges could be on the way out after Visa became the first company to ban Australian retailers from slapping on the fees.
The new rules follow a Reserve Bank of Australia review and give credit card companies the power to force retailers to limit what they charge consumers to use credit and charge cards.
New rules come into force on Monday, which Visa says it will use to restrict surcharges to as little as one per cent.
Among the biggest culprits accused of using surcharges as a revenue source are taxi companies, who place a 10 per cent surcharge on customers who pay with their credit card.
Read more: http://www.smh.com.au/business/visa...t-card-fees-20130318-2g9nl.html#ixzz2OiWq1Hwa
I have avoided Cabcharge.
I have a number of mates who own and drive taxis.
Of all the industries in Australia this is most prone to a black swan event.
The deregulation of the taxi industry and the end of a monopoly by a few over licenses.
gg
From your lips to God's ears. Even cabcharge's highly paid lobbyists won't be able to hold back the tide of smartphone apps etc. forever.
Read more: http://www.theage.com.au/victoria/c...axi-shakeup-20130528-2n87p.html#ixzz2UXrMkJaJMajor reforms include giving taxi drivers a guaranteed 55 per cent of the fare box in a bid to raise driver income, and introducing an independently run driver knowledge test for all drivers.
The cost of paying for a cab by eftpos will be slashed 50 per cent, from 10 to 5 per cent of the fare.
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Metropolitan taxi licences, currently valued at about $350,000, will be made available for $22,000 a year, indexed at 0.5 per cent below the inflation rate.
Former ACCC chairman Graeme Samuel has been appointed the chair of the new Taxi Services Commission, which will administer the reforms and monitor the industry.
Reduced off peak fares will be introduced, with higher fares at peak times on Friday and Saturday nights to address cab shortages
Reforms in summary
Consideration of variable pricing with higher fares in peak periods
Moves to increase the flagfall and reduce the price per kilometre for the metropolitan zone to address short-fare refusal and inefficient behaviour such as airport overcrowding
Drivers will get more of the what is on the meter, and will now collect 55 per cent of the fare box takings - up from 50 per cent
Drivers will have to pass an independent knowledge exam to be accredited
Card-payment fees will drop from 10 to 5 per cent to improve affordability, and there will be a new set fee for new licenses - up to $20,000 annually, depending on the zone
New taxi licences available at any time to approved applicants at a set price
New in-vehicle information (such as windshield stickers, placards and other signage) will be compatible with smartphone technology, such as the inclusion of a barcode that can be scanned by mobile phones and other portable devices. Through this technology, passengers have direct access to a new taxi participants public register from the vehicle and, over time, be able to access information about service performance and driver quality
Increase taxi access to bus lanes along freeways and major roads
Changes could take up to three years to implement
http://www.theage.com.au/victoria/cabbies-pay-set-to-jump-in-taxi-shakeup-20130528-2n87p.html
Read more: http://www.theage.com.au/victoria/c...axi-shakeup-20130528-2n87p.html#ixzz2UXrMkJaJ
The sentence I've bolded is no doubt what's affecting cabcharge......
1. Taxi Permit Holders no longer required to affiliate with a taxi network. They will be free to join one or more Authorised Taxi Organisation or operate independently. This opens the gates for new taxi booking apps such as InGoGo to gain a legitimate foothold in the market. We view this as by far the biggest impact on Cabcharge out of all of the inquiry recommendations. Technology change via new taxi booking apps and smart phone payment processing systems is now a very real threat to traditional taxi networks as well as payment processing terminals.
I jump in with another 4000 shares during free fall to $4.00. -while people still digest and panic kicks in ...
IMO the killer is this.
This from an analyst's view.
Thats big cahones ROE, considering their entire business model has been pretty much unwound with these changes!
Those apps are fantastic. I use GoCatch all the time and if there's no cabs around jump on to Uber and get a hire car. Most cab drivers I've spoken to don't use the radio network at all. It's apparently unreliable and it costs them a fortune.
I don't see these apps having much of an effect. I work in a large private accounting firm and whenever travel gets mentioned Cabcharge dockets also get mentioned whether it be from financial planners or accountants visiting clients, seminars, meetings, lunches etc. Peter Slipper the politician didn't get in trouble via his PayPal account on a InGogo app. It would be one for the record books if a 1.5 mill business destroys a 600 mill business. It'll also be the day corporates and governments give PayPal accounts to their employees.
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