DirectCash Payments Inc (DCI.TO)

This was the only dog he had in his fund. The issue is that the ROE is about 20% and he wants stocks with more than that. He wants to see what the fourth quarter looks like. Pretty good dividend. Don’t buy it if you don’t have it.

His views have dimmed on this company. Cash is dying. You are probably better off owning Visa (V-N) or MasterCard (MC-N). The machine business they are into in North America is really mature and might even be shrinking.

Has ATMs and consumer type of machines in North America. Some analysts started questioning their accounting and profit margin. They did some international acquisitions because they had much higher profit margins and growth potential. After the acquisitions, the profit margins were not going up, they were actually kind of declining. Because of this, investors started questioning the entire model. Thinks the dividend is okay but would not recommend a Buy right now. Wait for a couple of more quarters.

(Top Pick Oct 03/12, Down 18.17%) A research firm wrote a report that rocketed it down. Since then Management has talked to the research firm.

One of those interesting ones that ranks low in his process. A big part of business is pre-paid cards. They are not seeing ATM business growth the way they use to see.

Had a severe correction because of a negative research report that sensationalized some of the headwinds but misunderstood the business. ATMs, Payday loans. Have been growing their profitability per machine. Safe dividend. Good management team. Great entry point.

Has taken a hit in the past number of weeks. Feels this is from negative analysts reports. Very decent company. They own ATM and payment processors across the country. A fairly steady Eddie type of cash flow business. Very good dividend of 8.2% and have increased them over the last number of years.

A research company has given them a very negative review. Some of the issues have been that they are in a declining business, transactions for ATMs are declining and they are having some debt problems. Management has refuted this and stated that the cash flow is very strong. It is true that the transaction per ATM has declined but they have been able to replace the revenue by charging for maintenance and other new transaction and services. If it has been beaten up enough, you could probably buy it for a trade.

(Market Call Minute.) Business has matured in North America and they are trying to pick it up overseas, but it is slow coming.

(A Top Pick October 3/12. Down 11.48%.) Had a couple of disappointing quarters. ROE has come down from 27% to 18%. He would like the ROE to be over 20%. Thinks the stock has been oversold so if you own, continue to Hold. He is guessing that this will be back in the mid-$20 in 6 months.

Would buy at these levels. Leading in ATM machines in Canada and Australia and now England. Lots of room for growth. They are going to use a lot of their excess cash flow to pay down debt and then they should grow the dividend nicely.

(A Top Pick June 18/12. Up 8.4%.) Disappointed in the share price performance, but not faulting management who put up good numbers. There was some concern about their most recent quarter because they lost one client, but he knew, for some time, that this was going to happen. Would like to see the stock back up at $28-$30. Big ATM player in Canada, UK, Australia and, to some extent, Mexico.

This is a company that is used as a high dividend stock so in the sector rotation that happened in the last couple of weeks, it took a pretty big hit. There is some concern about the North American margins shrinking but the international margins are doing okay. Likes the company but he doesn’t follow it although he’ll probably follow-up later this year.

Likes the stock. Pays a nice dividend of 5.4%. Pretty stable business. A lot of the small dividend payers have been under a lot of pressure. 5.25% dividend.

Really likes directcash. They own a lot of it. Doesn't know why it had a recent drop, but feels it's worth buying at these levels. There are a lot of costs they can cut out of the two acquisitions they've made.