Bank technology stocks took a tumble last week as investors bailed out of equities in favor of the bond market.
With money managers spooked about the prospect for higher interest rates, bonds suddenly appear more attractive than stocks. Add to that the continued free-fall of bank stocks, and it is not surprising most publicly held financial systems firms saw moderate to large declines during Thanksgiving week.
San Francisco-based brokerage firm Volpe, Welty & Co. announced that it has initiated coverage of Banctec Inc. with a "buy" recommendation.
Volpe Welty analyst Gregory S. Curhan said he expects Dallas-based Banctec to generate per-share earnings growth of 15% 20% compounded over next few years.
Mr. Curhan said he expects much of that growth to come from selling image processing systems to banks and other companies. He predicts that revenues from imaging systems will increase from $42.1 million in fiscal 1994 to $78.1 million in fiscal 1995. "The company has a great opportunity to sell this product line to existing customers as well as to new customers," he said in a report.
Banctec's common stock closed at $21.125 a share Friday, down 12.5 cents for the week.
Bank outsourcing and software firm Fiserv Inc. announced this month that its Comprehensive Banking System division has become the first U.S.-based banking software provider to receive a quality-assurance certification from the International Standards Organization.
The certification, called ISO 9001, has become a goal for software companies, especially those seeking business in Europe, where the standard was first developed.
Comprising 20 requirements that are audited by an outside firm, ISO 9001 specifies how to document, implement, and demonstrate a quality management system, Fiserv officials said.
"Receiving the ISO 9000 certification is a significant milestone on our path to total quality management," said Raju Shivdisani, president of the Fiserv Comprehensive Banking System division.
Fiserv's stock closed at $20.75 a share Friday, down $2 for the week.
Sungard Data Systems Inc., the Wayne, Pa.-based developer of trust and investment support software, announced this month that its board of directors had authorized the company to purchase up to one million shares of its stock on the open market.
Company officials also said it expects fully diluted 1994 earnings to be in the range of $2.14 to $2.20 per share, up from $2.09 in 1993. Sungard's chief financial officer, Michael J. Ruane, said the firm's goal is to grow 15% each year.
Sungard's common stock closed at $37.50 per share Friday, down 37.5 cents for the week.