Profiting From Tight Credit

Article Excerpt

ACCORD FINANCIAL CORP. $7.00 (Toronto symbol ACD; SI Rating: Speculative) (416-961-0007;; Shares outstanding: 9.6 million; Market cap: $66.9 million) operates mainly 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 the receivables. Besides factoring, Accord also offers other asset-based lending services. In the three months ended June 30, 2008, Accord’s revenues rose 4.6%, to $7.1 million from $6.8 million. Earnings rose 5.3%, to $1.8 million or $0.19 a share, from $1.7 million or $0.18 a share. Cash flow rose 19.8%, to $1.7 million or $0.18 a share, from $1.4 million or $0.15 a share. Accord’s shares yield 3.7%. Accord’s results will improve further along with the economy in both Canada and the U.S. The company is also benefiting from a tightening in the credit insurance industry. Accord’s shares are thin traders. However, we still see them as a buy. buy…

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