Carfinco Financial Group (CFN.TO)

Loves the business. They have a nice niche in the auto market.

Released a good quarter recently and expects the upward trajectory to continue. Stock looks quite undervalued right now. 5.2% dividend yield, which he expects will be boosted within 12 months.

Auto financing in the D segment, which has the highest risk profile. Price had come under pressure earlier this year because of the Short position of some US hedge funds.

Recently visited this company and got a very positive message. Have been dropping but now seems to be picking back up. Nice dividend. He is expecting another big year of growth. (See Top Picks.)

Lends money to people buying cars. Stock has done really well and most people really like the story. Doesn’t really follow this company. 4.7% dividend yield, which he believes is safe.

Stock pulled back because 1) quarter was slightly on the weak side because of a slight jump of loan-loss provisions and 2) did a financing and part of it was management selling some of their stock, which is never a good sign. Hasn’t sold his stock but he likes high ROE businesses that don’t raise additional equity. Stock still screens very well and looks very attractive. He would probably take Rifco (RFC-X) over this one right now.

(A Top Pick March 5/12. Up 59.52%.) Still able to grow quite comfortably going forward. Don’t really face any competition in the space they are in. If you own, continue to Hold. Thinks there are more dividend hikes coming. (See Top Picks.)

Sold his holdings because of his views on 1) valuations and 2) Cdn consumer being pretty stretched at the lower end of the economy, which is where they mostly service. Fantastically run company. Very high ROE’s.

(A Top Pick Jan 13/12. Up 66.19%.) Still adding. Has a very high ROE. This is one that you can continue holding for a while.

Had a huge run. Given his view on the Canadian consumer, even though the company is a fantastic operator, he has started selling his holdings. He would wait for a pullback before stepping back in.

Becoming a good steady Eddie where it should grow in line with its earnings growth rate but its earnings growth rate is projected to be around 20%. If that’s the case, your earnings go up 20% and dividend of 4.8% with a good chance that the dividend will go up again.

(Top Pick Oct 17/11, Up 57.57%) Not a lot of competition. High return on capital and they don’t need to retain it so they keep raising the dividend of 4.6%