Currency Exchange Intl. (CXI.TO)

They physically provide foreign exchange to banks and financial institutions. This is a low risk business. Likes the growth potential going forward, because he thinks they are on the cusp of getting their bank license. When they get this, they can acquire currency directly from the central bank, so they can buy from the Bank of England or the federal reserve. This eliminates the intermediary. Also, from a marketing point of view, if you are a Canadian bank you generally want to deal bank to bank, not bank to financial services provider. Currently at 17.5X next year’s earnings, while banks are at 11 times. Thinks it can easily get to $30 as soon as the bank license comes out.

(A Top Pick Oct 31/13. Up 87.05%.) Still believes the story and likes all the fundamentals. They are waiting, waiting, waiting to get a bank license. It is unbelievable how great the market in foreign exchange is.

This is a name that he has held since the IPO. It is a great core holding. They are a wholesaler of foreign exchange, so they provide physical currencies to any financial institution. They are in the supply and logistics business. Likes this as a low risk business. Feels they are going to be growing at about 30%. Have applied for a bank license, which would be a catalyst for them in terms of both marketing and improving profitability. Has a lot of growth potential.

(Top Pick Jul 16/13, Up 65.82%) He recently added and continues to like the name. Still a buy in his books. They did a cash acquisition of a competitor and improved their margins. Thinks they are having a very good quarter. Thinks there are good prospects going forward.

(A Top Pick July 16/13. Up 62.5%.) Specialists in foreign-exchange and provide cash to banks, credit unions and some retail stores. A relatively low risk business in that they’re buying and selling on both sides and taking a margin. What is attractive is the growth potential. They are on the cusp of getting a bank license. When they do, this will improve margins because they can buy from central banks directly, rather than using a middleman. Also when dealing bank to bank, they have a different credit profile.

Starting to get a little bit more recognition, but the key catalyst is that they are going to get a bank license at some point, which really opens up their marketing efforts and also helps to bring down their costs so they can buy directly from central banks. The #3 player in Canada and #4 in North America.

Has taken a lot of time for it to break out. It is going to be very interesting because it will get a banking license for Canada shortly. He was a director on the board of this company when it was private.

Randolph Taylor has just had to sell down to 25% so that the company can be qualified to become a Canadian bank. One of the leaders in foreign currency exchanges in North America.

(Top Pick Jul 16/13, Up 7.14%) They are applying for a bank license and hope to get it either this month or next. Thinks this will surprise the market.

Coming out with their Q2 numbers in early August and this will show a very good quarter. Have just signed up a very large US bank and in the 1^st month of operation, it became the #1 client. They are the #4 player in the US in terms of the wholesale foreign-exchange and he sees them going to #2. He expects them to get a bank license late Sept/early Oct and when they get this, it not only improves their margins but it dramatically increases their marketability.

Run out of Orlando. Second important most important currency exchange company in the US. They are going after a Canadian banking license. It has now broken out. If you are willing to hold in a low liquidity stock you will likely do well.