DH Corporation (DH.TO)

Long time holder. Fits into financial technology sector. Used to be printing cheques and today they have tremendous success with acquisitions. 4% yield. Company is growing. Stock is behaving well. Consider adding to it.

An interesting company that used to make cheques but now is an IT company for banks. They acquired heartland in the US which will be the core driving the company in the next few years. The US is more fragmented on the banking side so there is more opportunity for them there. They are executing well on that acquisition and he thinks there will be more tuckins in the next little while. Good dividend yield but it may not rise for a while. There is lots of opportunity for the company to grow.

A Canadian growth company with a growth catalyst to US exposure. Recently purchased the 5^th largest US financial network company. He loves the financial technology space as an area of investment but his preferences are towards others. If your goal is to be able to generate income, this company does that better than others. Trading close to its 52-week high and he would like it closer to $25.

(A Top Pick Jan 23/13. Up 39.49%.) As they were getting out of the chequing business, they were getting more into financial services. This last deal that they made was what really got the stock price going. Still sees good upside.

Been a steady performer. The catalyst is the recent acquisition in the US that solidifies their presence in the financial technology space. Payout ratio is manageable and cash flow will increase going forward allowing a dividend increase.

Have done a great job transitioning from a cheque provider into a financial technology company. Well managed company. Tend to have long-term relationships with their customers. Good cash flow and good debt management.

Technically, there are 2 things going on. This has a big, long uptrend that is still well intact. But there was also a shorter uptrend that has definitely been broken. Next level of support would be around $26-$27 and it looks like it may be trying to bounce off that right now. If you own, he would want to see this hold. There is some danger that because the short-term trend was broken, you might not see it hold. Consider putting a stop loss on it.

(A Top Pick Dec 27/12. Up 43.4%.) Still likes. Made a large acquisition called Hartland so doesn’t expect there will be a dividend increase. Hartland grew their US business quite considerably. This is now really an information technology company in the financial space and the real growth will be coming from the US when they integrate this.

(Market Call Minute.) Have done a good job diversifying away from that traditional cheque business.

(A Top Pick Dec 27/12. Up 45.73%.) A technology company that works in the financial services industry. Diversifying into the US by doing a lot of technology stuff for loans, mortgages, etc. Unlike Canada, the US has 1000-9000 banks so they have a lot of room to grow and can do some tuck-in acquisitions. You’re not going to see any dividend increases for a while as they pay down their debt. He can see some real organic growth down the road for them.

(A Top Pick Oct 11/12. Up 54.22%.) Have transformed themselves from a cheque printing company to a technology company doing the back office functions for banks. Still thinks there is a little room for it to go further. Still a Buy.

Had a decent run and thinks this will continue. Sold his holdings in the high $20s and then bought back in on a deal they did to buy Harlan Financial Services in the US. This opened up their US core technology position in US banking and broadened their reach in credit unions and US banks, allowing them to cross sell. Feels the stock is now priced for that to work and now they have to execute. 4.5% dividend.

A huge transformation. They bought IT systems for small banks. 4.55% dividend. Thinks there is cross selling opportunities. Believes there will be multiple expansion as they are recognized by the market. They are still integrating so they still have to see synergies and cost cutting from this acquisition. Expects a March dividend increase.

Started life as a cheque producing company. Obviously as people write fewer and fewer cheques, it has been a less important part of their business. Have evolved into a business services company all related to banking services. Pays a nice yield.

Made a fairly sizable US acquisition a few months ago. Are trying to transition themselves into a financial technology company and have done a really, really good job. Cheque writing is about 30% and is very stable, but they’ve done a very good job of diversifying away from it. Very prudent in the acquisitions that they make in the US, which are predominantly contracted revenues. Dividend will grow over time but probably in the 1%-3% range.