Josh Arnold
Long/short equity

Official Payments: Potential Expansion Limited, Contraction Likely

Official Payments Holdings, Inc. (NASDAQ:OPAY) is an electronic payments provider in the US and Puerto Rico. The company offers its clients streamlined payment receipt options including debit, credit, pay-by-phone and others. OPAY also offers call center interactive voice response systems in addition to its core payments business, although this business is tiny. The company works with federal, state and local governments to accept payments for various bills such as utilities, school meal plans, business taxes, income taxes and more as well as working with non-governmental entities. The stock has almost doubled in the past year on stronger operating results and is trading at multi-year highs. However, I intend to argue here that based upon the company's earnings and...

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