John Kim First Data Corp FDC-N PAST TOP PICK Aug 22, 2016

One of the largest merchant acquirers and payment processors in the US. About 80%+ of their business is in the US. Valuation is really cheap. They should throw off around $3 billion in free cash flow over the next 3 years, about 30% of their market cap. Even if they flat lined, with the amount of cash they throw off you should be able to accrete over 30% in the next 3 years.

One of his largest positions. He is holds this because of its cash flow stream and the paying down of debt. Even if he flat lined the revenues, he feels he would still make somewhere in the neighbourhood of 20%-25% a year for the next few years.

(Top Pick Aug 22/16, Up 4.71%) He still likes it. It’s also a Top Pick. It had a drop due to an insider trading case with a significant holder of the stock. It trades at a low multiple. It has a mass of free cash flow that pays down debt. It has a lot of leverage but they can pay it down about 10% a year.

They are a merchant acquirer. They put the terminal in the retail store. They are a facilitator. There is still a migration in the US away from cheques. They are far behind Canada with Tap and go.

This is a fin-tech company that posted great earnings recently. They are doing well and he likes them. The recent consolidation over the last year allowed them to grow into their multiple. He likes the technical momentum as well.