Euronet Worldwide, Inc. (EEFT) is a well-balanced, growing company trading at a fair price. However, there are two events that currently add substantial uncertainty to the future value of its shares. Firstly, MoneyGram (MGI), a strong rival in the money transfer segment, is for sale. And secondly, the management proposed a 7% share dilution.
Risk-taking investors could use these two events as a bi-directional yes/no trade, betting on their outcome. Long-term investors should wait until these two issues are resolved, or take advantage of the price fluctuation and buy when the stock price reflects the most negative outcomes of these two events. Currently, the stock is fairly priced and does not fully reflect the worst-case outcomes...
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