Topic: How To Invest

Hello. Just wondering what your thoughts are on Accord Financial. Thanks.

Article Excerpt

Accord Financial, $8.11, symbol ACD on Toronto (Shares outstanding: 8.2 million; Market cap: $67.8 million;, 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. Besides factoring, Accord provides loans using a client’s assets as collateral. These assets include accounts receivable, inventory and equipment. It also offers purchase order financing (or lending based on valid agreements to purchase goods and services). Accord was a pick of our Stock Pickers Digest newsletter until we recommended selling the stock at $7.55 in our February 2011 issue. The shares had traded in a narrow range between $5 and $6 from late 2008 until July 2010, when they jumped over 37% to just under $8. The rise came after the company reported higher revenue and earnings due to a recovering economy. In February 2011, we thought the company’s growth prospects appeared limited,…

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