How to Invest in ATM Machines

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The cash economy is alive and well. According to Mike Lee, CEO of the ATM Industry Association, approximately 1.7 million ATMs are installed worldwide, and the amount of cash circulating in the world is growing rapidly, even in developed economies. As a result, global financial technology is becoming more sophisticated every year. All that cash needs to be dispensed somehow, and several companies are competing to do it.

Procedure

  • Decide how much money you want to invest in ATMs. Many investors like to diversify their investments, so that unforeseen problems affecting any one sector don't ruin their entire portfolio.

  • Investigate publicly traded ATM manufacturers. The major ATM manufacturers are the American companies NCR Corporation (NYSE:NCR) and Diebold (NYSE:DBD) and the German company Wincor Nixdorf (FWB:WIN, available over-the-counter in the United States as PINK:WNXDY). All are required by regulatory authorities to publish detailed financial information, which is available at their websites. A host of smaller companies are also involved in ATM-related businesses. You can get leads by reading the annual reports of the major manufacturers and browsing the ATM Industry Association website. Review their financial statements and consider the broader economy when deciding whether and how much to invest. How will each of these companies fare in the years to come compared to the others?

  • Consider peripheral industries. Vendors like Microsoft (NASDAQ:MSFT) and Intel (NASDAQ:INTC) supply materials used in ATM manufacture, even though it's not their main business. Check the manufacturers' annual reports for other ideas.

  • Buy shares. After doing your diligent research, if you feel that an ATM stock price presents a good value relative to its actual worth, buy some shares.

  • Monitor your investment carefully. Market conditions are constantly changing, and unexpected events are certain. Follow the general business news and the news about your holdings in particular to be aware of the future for your investment.

Tips & Warnings

  • Consider related industries, such as banks, which can benefit from ATM use.
  • Investing in stocks is not a sure thing. You can potentially lose your entire investment if a company goes bankrupt. Consider your personal financial situation carefully, and don't invest money you can't afford to lose.

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