Big jump for Accord

Article Excerpt

ACCORD FINANCIAL CORP. $7.51 (Toronto symbol ACD; SI Rating: Speculative) (416-961-0007; www.accordfinancial. com; Shares outstanding: 9.4 million; Market cap: $70.6 million) is up over 36% since it reported improved results in the latest quarter. The company also raised its dividend. In the three months ended June 30, 2010, revenue rose 42.1%, to $8.1 million from $5.7 million a year earlier. Earnings jumped to $2.3 million, or $0.25 a share, from $1.3 million, or $0.05 a share. The improving economy pushed up Accord’s results. Accord gets most of its revenue from the factoring business in Canada and the U.S. Factoring is the purchase of accounts receivable at a discount. Accord profits by collecting on these receivables, generally at face value. Accord has raised its quarterly dividend by 15.4%, to $0.075 from $0.065. Its shares now yield 4.0%. Accord’s shares are thin traders, but we still see the stock as a hold. hold…

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