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Carfinco Financial Group (CFN.TO)

BUY
Likes this one a lot. Feels the dividend is sustainable. Auto sector seems to be going gangbusters. Demand is starting to pick up. Disciplined management team.
TOP PICK
Car Loans. Both growth and dividends. (5.4% yield.) Payout ratio is only 35%-40%. Expect there will be a dividend hike some time between now and mid-year again, which should take the stock higher.
BUY
5.5% dividend. Earnings in 2012 will be 25-30% higher. Dividend should go up in first or second quarter to stay above 5%, which is their policy. It is a cash cow on wheels. Right up at the top of his list.
TOP PICK
Car loans. They do C and D types of credit. They continue to grow at 20%-25% compound interest annually. Just had a record quarter. 5.7% yield. Has a history of paying special dividends.
TOP PICK
Just raised their dividend to give a 5 .9% yield and feels they can grow by 25% so they should be substantially higher in a years time. Will probably raise their dividend in a years time again.
BUY
Just raised their dividend by 20%. Facing out of being an income trust. 4.9% yield.
PAST TOP PICK
(Top Pick Aug 6/10, Up 43.03%)
TOP PICK
More dividend hikes coming. Company is growing at 30%. Has been pausing for last 6-9 months.
TOP PICK
Lends money for non-regular car loans. GPS technology sounds car horn in event of non-payment. For sale for about a year but nothing happened and he doesn’t think anything will. Expects it will be re-evaluated as a stand alone company. 4.6% yield and a terrific growth profile. Very cheap.
TOP PICK
Cheap at 9X PE. Recently increased their bank lines to further increase their lending. With dealership closings and dealers wanting to stay in business, this company finances them. Have the ability to move upstream into B&C type of credit and across Canada. 4.3% yield and a history of special dividends.
HOLD
Recently announced that they are up for sale. Likely Buyer will probably come from the US. He is happy to hold on to the stock. Might consider selling if it got up to $8-$8.50. Pays a very nice dividend. Would be a Buy at $5.
PAST TOP PICK
(A Top Pick Dec 3/09. Up 270%.) Lends money to those who don’t qualify for regular car loans. GPS technology is used to turn the car off in the event of non-payment.
BUY
Financing business of major automakers has essentially gone away so this is a potential acquisition target in addition to being able to grow their loan book organically with quite nice profitability.
PAST TOP PICK
(A Top Pick Dec 3/09. Up 219%.) Vehicle lending to subprime market. Turnaround came from a couple of areas, 1) financial services area has come back and 2) started installing GPS technology to control cars in case of non-payment. Still a Buy.
COMMENT
Consumer loans for cars. If payer is delinquent or behind, they can stop car from running or set off an alarm. Looking at this one.
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