Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, March 28, 2014

Article Excerpt

CARFINCO FINANCIAL GROUP INC., $9.71, symbol CFN on Toronto, provides car loans to consumers who don’t meet the criteria of traditional lenders, like banks. In September 2013, Carfinco expanded into the U.S. through its $9.5-million purchase of Persian Acceptance Corp., an automotive lender that also caters to less-affluent borrowers. The acquisition increased Carfinco’s loans outstanding by 22%. In the three months ended December 31, 2013, the company’s revenue rose 29.6%, to $24.9 million from $19.2 million a year earlier. Carfinco loaned $46.0 million in the quarter, up 14.8% from $40.1 million. Overall earnings rose 1.7%, to $5.1 million from $5.0 million, while per-share earnings fell 5.0%, to $0.19 from $0.20, on more shares outstanding. The latest results included one-time costs related to the Persian Acceptance purchase. Carfinco will need a steady or improving economy to maintain its growth. However, its well-established dealer network and investments in Internet loan-approval technology should let it keep increasing its market share. The stock trades at just 8.7 times Carfinco’s…

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