DBD , Bearish case for upcoming earnings and beyond. (work in progress wanted to get started)

Background on this is my significant other is a vp of operations at a financial institution and listening to conversations with peers at other institutions and people in the industry the same conversations about Diebold keep coming up so it sparked my interest in this:

Diebold Nixdorf is a banking software/atm company that is failing to keep up with the technological advances of its peers. Virtual bank tellers are the future especially in the new covid era, with everyone scrambling to go virtual, the common theme is banks leaving Diebold in favor of their competitors that offer true virtual solutions like Hyosung and their largest competitor NCR. Earnings call is feb 10th and once again I think they miss.

market share comparison:

Here is how the stock traded through earnings over the last year

In the short term I will be looking at puts for the feb 10th earnings call and looking for good entry on possible longer term puts

*this is my first DD any feedback/constructive criticism would be fantastic to help me learn/grow. thanks!

6 Likes

Nice job and I think you are right. Lower tier banks and credit unions may be the bigger customers of DBD. And if there are more cost effective alternatives I’m sure they would go for it. I am going to look into this a little on my real job and circle back. But I will go in for some puts on Monday. Can see this going down below $9 leading up to ER so worth riding it. Cheers

If there is too much competition for them to stay relevant, you’ll likely see it in the same aspect as Netflix did.

Also ITM OI is in favor of puts right now. These 7.5s are likely to become ITM if this trend keeps going and they’re only 0.15-0.20 as of Friday

5 Likes

Awesome, any insight you have is greatly appreciated!

Well earnings were today and DBD missed by .51, The stock was trading between 9-10.00 when I posted the initial DD and closed today around 7.96 I hope everyone who played made some profits!!!

1 Like

Didn’t get to play this but nice work!

2 Likes