In case you missed it, iconic investment prognosticator Jim Cramerof CNBC gave a bullish nod toward Fleet Cards. http://www.cnbc.com/id/102037179 Inparticular, Fleetcor and WEX. As a component of a recent week long focuson Global Payments, Cramer described Fleet Cards as “possibly the hottestindustry you’ve never heard of”, stating the business model has more in commonwith an investment firm or private equity offering than other payments sectors.
Due to the highly fragmented and underpenetrated nature of FleetCards, Cramer highlighted the market size, trending toward over $1.5 trillionin spend this year, and fact that the largest player, Fleetcor only holds athree percent market share. But we’ve all known that for a while, right?
The global scale of Fleet and the opportunities that arepresented through additional consolidation is significant. That someone like Jim Cramer is taking notice of these twocompanies as an investment opportunity, while somewhat anecdotal, reallysupports the ongoing growth through consolidation perspective.
It is nice to hear from those outside of our B2B brethren talkabout the sector. As often occurs, those that innovate and develop uniqueofferings (Cramer’s mention of Fleetcor’s proprietary Chip and PIN relationshipwith Visa) and provide a robust network and platform, even in a verycompetitive and cluttered market can make those inside and outside of theindustry take notice. Plus it doesn’t hurt to have a positive trackrecord when opportunities to acquire further present themselves.
Overview by Rick Hall, Director of Commercial and Enterprise Payments for Mercator Advisory Group
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