Low p/e buys with good yields

Article Excerpt

ACCORD FINANCIAL CORP. $6.19 (Toronto symbol ACD; SI Rating: Speculative) (416-961-0007; www.accordfinancial.com; Shares outstanding: 9.4 million; Market cap: $58.2 million) is in the factoring business in Canada and the U.S. Factoring is the purchase of a company’s accounts receivable at a discount. Accord profits by collecting these, though it also assumes the risk. Accord can also handle a company’s credit-checking, record-keeping and collections. Most of its customers don’t meet bank lending standards. Besides factoring, Accord provides loans that are based on a client’s assets. These include financing tangible assets, such as inventory, equipment and real estate. It also offers purchase order financing (or financing based on valid purchase orders). In the three months ended March 31, 2009, Accord’s revenue fell 18.3%, to $6.1 million from $7.4 million a year earlier. Earnings fell 14%, to $1.3 million, or $0.14 a share, from $1.5 million, or $0.16. Revenue and profit fell on fewer loans outstanding and lower yields. These resulted, in part, from a drop…

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