DirectCash Payments Inc (DCI.TO)

One of his biggest positions. Owned since the IPO. Loves the company. 7-7.5 times PE. Payout ratio about 50%. Doing a great job growing international business. Now is the time to get into this name.

Largest ATM provider in Canada, Australia and number 3 in the UK. He likes the 8.5% yield. Pretty cheap at 7X EBITDA. Very predictable cash flows. Not very well covered in the industry.

Very strong management team. A big negative that happened to them was the whole Cash Store financial situation and their association with it. That was a big part of their business and it came down. Numbers have been fairly steady. If you have a 3-5 year timeframe, you will do fairly well, and in the meantime you are getting paid a nice healthy dividend.

The largest owner of the white label ATMs in Canada and Australia. The 3^rd largest in the UK. They actually have a bigger network than all of the banks. A nice yield of about 8%. 8X EBITDA, which is pretty modest. Likes management. CEO owns about 12%. A name he is watching. May not be a good time to enter, but a good, long term holding.

(Top Pick Jan 21/14, Up 0.82%) A bad report last year turned out to be unfounded. The dividend has been increased recently. Phenomenal job of making acquisitions internationally. They are good at driving down their costs and getting their margins per ATM machine up. One of the safest stocks. Over 8% dividend. 50% payout ratio. Great recurring revenue stream.

Had a bit of a pullback last year. Did a lot of business with the Cash Store, which had gotten into a fair bit of trouble. Also, there were a bunch of Shorts attacking the stock, which knocked the stock back significantly. It was way overdone, so at these levels, it is very attractive. A nice cash generating business.

Got beat up by Veritas last year because of a lack of disclosure, so they started disclosing more, and now the stock is starting to re-rate. Besides the 8.5% dividend yield, there is good capital appreciation ahead and he thinks the stock goes back to $20 fairly quickly, and you will still have a great yield.

(Market Call Minute.) Not enough growth for him. You’re getting about a 9% dividend, but you’re not getting much beyond that. Thinks the dividend is very safe.

Used to be a very fast growing company. Believes they made an acquisition in Australia. Also, thinks they were involved with a cash store and using some of their cards and making quite a bit of money from those. Believes that has shut down. Doesn’t think earnings are going to grow very much. Has a big yield, but in terms of long-term he feels management is in the penalty box.

He compares them to DH-T. This has a strong management team. Could be an interesting time to enter if you are a value investor.

(A Top Pick April 3/13. Down 32.01%.) News flow has been quite negative. Feels there was a lot of predatory research on the company, but there has also been some new fundamental stuff that has come up lately in terms of their relationship with the cash store. He got tired of the stock being battered by everybody all the time. In terms of valuation, the stock still looks attractive, but seems to be the whipping child for all the bearish researchers.

In a challenging spot right now. Looks like the numbers are slowly deteriorating. Prefers DH-T

Short. Cash store went out of business in Ontario, supplier of ATMs. Thinks the business is going to zero. Worried they would have some of liability to the Cash Store loans.

(Market Call Minute.) A nice income stock but don’t expect too much until their margins improve.

Really likes this company and its management. Stock has come way down for reasons that are not necessarily justified. A great buy at these levels. Dividend is safe. Expects the stock will be revalued this year as they prove themselves that their Australian and UK acquisitions were good and are managing the bottom line very well.