Research firm Zack's just downgraded the company to "strong sell." While I don't disagree with this sentiment, it comes exactly nine months after I warned investors that VeriFone was a disaster in the making.
Last week, after VeriFone reported a brutal second-quarter earnings report, the analyst community was forced to the point where they had to say "enough is enough." I say "forced" because it seems as if their hands were tied. For one reason or another, investors have always wanted to like this stock despite overwhelming evidence suggesting they shouldn't.
The fact that shares of VeriFone were up over 20% from the low serves as a perfect example. This came amid concerns about emerging mobile threats from the likes of Square and Intuit (INTU), which has also begun to threaten VeriFone's value-added payment services.Making matters worse, there's Apple (APPL), whose next iPhone is expected to be equipped with fingerprint scanning and an eWallet, which is broadly presumed as the nail in VeriFone's coffin.
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