Propel Holdings (PRL-T)

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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Consistently profitable, raising dividend. No bricks and mortar, works with credit unions. Uses AI to follow your tracks to get a more enhanced credit score, so it's a better predictor of a borrower's credit worthiness. We'll need to get data from a credit cycle, but so far credit quality seems to be really strong. Yield is 2.3%.

Excellent business within alternative lending space. Online business very strong. Trading at low multiple - good entry place for investors. Expecting loan book to expand. Good name at reasonable valuation. 

He likes and knows it really well. Management is doing an excellent job. It has doubled its profits every year for the last 3 years. It is hard to keep up this pace but it should be able to continue to have healthy growth and profits. Has a high ROC, good dividend, single digit multiples. Management and insiders own lots.

Done well and will continue to. Strong management, but he doesn't invest in small companies. A great company from a speculative standpoint.

He owns 3-4 fintechs like this. PRL does consumer loans, providing for American credit loans. Great track record. Are growing rapidly and pay a nice dividend now. Shares have rebounded well since last fall. Trades at 8zx cash earnings. Growing this year probably 30%.

We can't personalize answers, but the stock has solid momentum and remains reasonably valued. Year over year growth looks good and the last quarter was VERY strong. The dividend was raised in November. We would be comfortable continuing to hold.
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It is an online lender that gives fast access to LOC's and loans mostly to customers in the U.S. Its forecast is for 3X higher revenue and 5X higher profits than its IPO two years ago but the stock is up only 30% since then. It has everything: high growth rate, single digit P/E, 3 1/2% yield. Its technology is incredible. It can look at 1000 variables on a borrower in under 10 seconds.     Buy 5  Hold 0  Sell 0

PRL operates as a consumer lending platform and is now trading at 5.9x times' Forward P/E. In the last few years, revenue growth has been solid. The balance sheet is quite leveraged with long-term debt of $172M, and long-term debt/equity is around 1.82x. PRL’s business model involves borrowing long-term debt and lending it within a short period of time to consumers. Shares are up 48% YTD yet PRL is trading quite cheaply given its growth prospects. Business may improve as well with lower rates. Insiders are committed with 24% ownership and the last quarter was nicely ahead of estimates. It went public in 2021 and only received went over its IPO price. But it is starting to put things together and we consider it interesting. We still prefer much larger peer GSY overall.
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