PXGYF - PAX Global Technology Still Very Much Under A Cloud

• PAX Global's shares still haven't recovered from a sharp fall tied to reports of vulnerabilities in the company's terminals that could be used to launch cyberattacks and/or steal data.
• Management hired a unit of Palo Alto Networks to investigate the issue and no untoward traffic/behavior was found.
• It remains to be seen how customers in key emerging markets react to this news, as markets like Brazil, India, and Indonesia remain key long-term growth drivers.
• PAX's PAXSTORE remains as a significant potential competitive differentiator, as does the company's capacity to serve a variety of payment types in simple, cost-efficient hardware footprints.
• Sentiment is so weak that almost any growth over the next decade can support an attractive fair value, but the level of disclosure is a serious drawback to the investment case.

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