Currency Exchange Intl. (CXI.TO)

(A Top Pick May 29/15. Down 25.93%.) A currency wholesaler where they supply to local institutions, so it is more of a logistics business. About 3.5 years ago they applied for a Schedule 1 bank license. A year ago he thought it was imminent. However, 1 year later he is still waiting. A lot of their sales have been deferred because of that. He is happy to continue holding it.

A more speculative name in that it doesn’t trade very regularly. They are in the foreign currency exchange products in North America. Has an online website and technology that the banks can use as well. They’ve been working on trying to get their Schedule 1 bank license, for the distribution of banknotes.

Has been waiting for a bank charter. The underlying business of changing notes is a good one and has high margins. To get them to the next level, they really need this bank charter. Until he gets that, he is not willing to go into it.

This is a niche business in the non-banks sector. The stock has fallen back partly because the market has been waiting 2 years for them to get their Schedule 1 bank license. When they do get it, it opens up a lot more doors in terms of marketing. (A lot of banks will deal only bank to bank in terms of a foreign exchange vendor.) Also, it would give them direct access to Central Banks, so they don’t have to pay a middleman in order to get access to foreign exchange. Thinks they are on the cusp of getting that bank license. Unfortunately, the summer election and the change in government have delayed that.

(A Top Pick Feb 4/15. Down 28.66%.) The stronger US$ has impacted transaction volume. Their actual number of transactions is increasing, but if you are converting any other currency into the US, you have less money to do it. That has really impacted volume. Their most recent quarter wasn’t great, but expectations have been pretty low as well. Still waiting for their bank license, and when it comes in that should boost the stock.

Still likes this. Has been a little quiet in terms of news, and the share price has drifted off. Everyone is waiting for the bank license to come through and he is confident that they will get that. Assumes it will come in the 1^st half of next year. When it does, that will be a catalyst for a lot of sales. The only headwind is the strength of the US$.

(A Top Pick Feb 4/15. Down 12.12%.) A lot of people have been selling this because it is down, but nothing really has gone wrong with the company. They are trying to get a banking license, and with the new government, that might take a little longer. Management owns a lot. Revenues have quadrupled over the last 5 years. Still likes it.

(A Top Pick Oct 21/14. Up 64.3%.) There has been some anticipation of the bank license coming through this summer, but this is outside of their control. Had some headwinds in the last 2 quarters on an operational level, largely due to the strength of the US$ against the euro, their main trading currency. Thinks there will be growth ahead once they get the bank license through.

Going from strength to strength. Market is anticipating them getting their bank license. Temporary pull back right now. Doing well in the states. Great long term story.

Used to be a top pick. He really likes the company. Management has done this business before. A dividend is possible down the road. They are getting a lot of attention in the markets because their growth profile is pretty solid.

Essentially a provider of foreign exchange to financial institutions. Likes this as a low-risk, high growth business, that has the potential to be something very big. They carved a niche for themselves in the provision of foreign exchange. They can do foreign exchange cheaper and more efficiently than the banks themselves. Analysts are looking for 35% earnings growth in the next 2 years, and he thinks they are going to exceed that. Management has a history of under promising and over delivering. Feels it could be a $50 stock in the not too distant future.

(A Top Pick April 16/14. Up 136.93%.) Still an uncrowded trade. Great story. Grew revenues and earnings by 40% last year. Management has been very conservative in saying they think they’ll be able to grow 30% in the next couple of years. He thinks they will do a lot better than that. At some point they are going to get their bank license, and when they do, it brings in all the Canadian banks essentially as customers. He thinks this will be a $50 stock within a year.

It looks like a strong chart. There is no reason to be concerned about the stock. It has outperformed. He thinks it will go higher.

(A Top Pick April 16/14. Up 105.63%.) This is essentially a wholesaler of foreign exchange. They supply the banks, credit unions and trust companies. Currently most of their sales are in the US, but he expects that they will get a lot more sales within Canada this year. The key catalyst for this is a bank license, and he expects they will get one within the 1^st half of this year. As a consequence, they will be able to tap the Canadian banks in a relatively short order. Thinks that as soon as the bank license comes out, it will immediately gap up to $30. Expects it will grow at 50% this year. Last year, even without the bank license, they grew revenues 40%.

It is about the management team. They are a currency exchange service. Their software keeps track of currencies and allows them to offer better service to their customers. Revenues are increasing and their outlook is better going forward. Management owns a lot of the company. It is an all in management company.