Executive Summary.........................................................................................................................5
Investment Summary ........................................................................................................................6
Industry Risks ..................................................................................................................................7
I. Payments Industry Landscape .......................................................................................................9
II. Payment Industry Dynamics ......................................................................................................10
III. Basic Industry Segmentation & Mechanics ..............................................................................20
IV. Bank Technology Industry Dynamics ......................................................................................25
IV. Performance and Valuation ......................................................................................................30
Price Target Justifications and Impediments ..................................................................................35
Company Profiles:
Visa Inc. (NYSE: V) .......................................................................................................................38
Alliance Data Systems (NYSE: ADS) ............................................................................................47
Global Payments Inc. (NYSE: GPN)..............................................................................................58
MasterCard Inc. (NYSE: MA) ........................................................................................................67
DealerTrack Holdings (NASDAQ: TRAK)....................................................................................77
Fidelity National Information (NYSE: FIS) ...................................................................................85
Fiserv, Inc. (NASDAQ: FISV) .......................................................................................................93
Jack Henry & Associates Inc. (NASDAQ: JKHY).......................................................................100
Lender Processing Services (NYSE: LPS) ...................................................................................108
MICROS Systems Inc. (NASDAQ: MCRS) ................................................................................118
Western Union Co. (NYSE: WU).................................................................................................127
VeriFone Holdings, Inc. (NYSE: PAY)........................................................................................135
Historical Stock Charts .................................................................................................................143
Required Disclosures ....................................................................................................................145