All of that would hurt not only VeriFone, but smaller rivals such as Ingenico and Global Payment ( GPN), which have begun to steal some of VeriFone's thunder. But unlike VeriFone, Ingenico and Global Payments have not had to deal with poor execution.

Does VerfiFone have the ability to turn things around? I believe it does. But the track record over the past 12 months suggests otherwise. And with the stock trading at just 10 times fiscal 2014 estimates, the Street is pricing VeriFone as if it can't recover. With the open CEO position, that is understandable.

VeriFone's current valuation looks interesting for those who want to play a short-term trade. But I would be careful about getting trapped here. I don't believe that the long-term prospects are as promising as they once were - not with products such as Intuit's ( INTU) Go Payment growing in popularity.

However, as I've said nine months ago and recently repeated here, the biggest overhang for VeriFone is Apple. Soon, like Visa, the iPhone will be "everywhere you want to be."

At the time of publication, the author held shares of Apple and had no position in any of the other stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Richard Saintvilus is a private investor with an information technology and engineering background and the founder and producer of the investor Web site Saint's Sense. He has been investing and trading for over 15 years. He employs conservative strategies in assessing equities and appraising value while minimizing downside risk. His decisions are based in part on management, growth prospects, return on equity and price-to-earnings as well as macroeconomic factors. He is an investor who seeks opportunities whether on the long or short side and believes in changing positions as information changes.

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