Thursday, October 26, 2006

What's Wrong With Checkfree (CKFR)?

Checkfree (CKFR) has a great business model. Yet management has underperformed in growing the online transaction business. I have written positively about Checkfree before. But now Checkfree is on my watch list. Management has produced two terrible quarters back to back. They botched earnings in early August and the stock fell from $43 to $37 overnight. In October management guided below consensus and the stock dropped 7%.

"The company found a difference between quarters that begin with long months, vs. those that begin with short months, Kight said. As a result, the first and fourth quarters of the company's fiscal year have lower transaction volumes." 10/25/06

Message to Management: "Stop making excuses and start executing or else shareholders will call for a change."

Note: I have no position in CKFR


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