Propel Holdings (PRL.TO)

Biggest position in his fund. Can't say enough positive things about it. Not as cheap as it was, has gone from 3x PE to 10x PE. Growing 30-40% a year. Still likes it.

It is a fintech company and a provider of credit through intermediators, all through AI. In fact it is almost a pure AI play. It covers Canada, the U.S. and U.K. It is still trading at a single digit P/E, growing at 67%, with earnings growing almost faster than the share price.

Caters to the sub-prime market. Very profitable, scalable business with lots of growth. Very AI-driven to deliver more precise marketing and underwriting. Trades at 12x PE for 2025 earnings, 31% growth rate. If economy stays healthy in 2025-26, credit should be stable. Yield is 2%.

Because it's a growthy company, you probably want to own it in a non-registered account.

Great company. Similar to GSY, but operates globally. Just made an acquisition in the UK, very accretive and profitable, doesn't need to be integrated. Good risk management.

More of an online lender to sub-prime borrowers. Higher growth rate than GSY. Very high ROE. Integrating a UK acquisition, more upside to come from that because AI algorithms can be used to grow it faster.

It is 2 years old, doing many things right, has grown earnings at 40% and raised its dividend many times. Therefore it is both income and growth. Its valuation is higher now and is near 20X earnings while the sector trades at 11 or 12X. Has business in both the U.S. and Canada. He is a little concerned if Trump sets the maximum interest rate at 10% but does not necessarily think that will happen. It should consolidate so you could buy in the lower 30's.

Great business. Largest position in fund. One of the best financial stocks in Canada. Online lending business (small loans to consumers). Return on equity ~30%. Trading around 10x earnings. Expecting further growth in company. Reasonable valuation with good dividend and growth prospects.  Would recommend buying and holding. 

One of the largest holdings in the fund. One of the best small cap growth stocks in Canada. Doubling of profits every single year. Expecting ~20% growth going forward. ~30% ROE, with minimum leverage. Lending in the US market with small base (able to grow). Highly aligned management that is top notch. Non-prime lender - but accounting for this with higher rates. Ability to underwrite without a human - tech very strong. 2% dividend yield is safe. 

PRL's dividend has increased by 30% compared to the same quarter for the  previous year, and much of this increase is in relation to its rising stock price. From 2021 to the end of 2023, its quarterly dividend payment was between $0.095 and $0.105, and its yield was between 5% and 6%. In late 2023 when its share price began to appreciate rapidly, its dividend yield dropped as a result, and to maintain an attractive yield PRL has been raising its dividend payment. Its yield now stands at 2.3% and has been fairly stable since early this year. 
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