MoneyGram International (Nasdaq:MGI) is about to release earnings results. Follow this Bear Case Scenario as you ponder management comments:
MoneyGram revenue per agent location is half of Western Union. The MGI network is of lower quality and has a long ways to go before its attractive.
Global economic weakness will create headwinds as the senders will not have the same cash resources as in the past.
Technology continues to compete. Smart Phones will continue to eat into services. Google may actually swallow someone like MoneyGram but not in a good way.
George Gutowski writes from a caveat emptor perspective.