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Mario Gabelli Comments on Diebold Inc.

Diebold Inc. (0.3%) ( DBD )(DBD - $39.89 - NYSE) is a global leader in the manufacture and servicing of ATM machines. It also provides security systems and services, primarily to the financial, commercial, government, and retail markets worldwide. In June 2013, Diebold appointed former Hewlett-Packard and Siemens executive Andy Mattes as its new CEO to lead a restructuring and turnaround of its operations. Andy, along with newly recruited leaders, has shown early signs of success, reducing the size of the workforce, freeing up working capital, and moving to standardize business practices globally to drive efficient operations. Returning margins to historical and peer levels should enable substantial upside for Diebold. At the same time, Diebold is positioning itself to benefit from a wave of global bank branch automation, whereby high-tech ATMs capable of handling advanced transactions replace tellers. Diebold is also focused on higher margin growth opportunities including the servicing of ATMs, a broader commercial security presence across verticals, and software as a service ( SAAS ). Altogether, we see Diebold as capable of doubling earnings over the next four years, while continuing to support a strong dividend.

From Mario Gabelli ( Trades , Portfolio )'s Gabelli Asset Fund's first quarter 2014 shareholder commentary.About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .

This article first appeared on GuruFocus .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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