Tuesday, 11 May 2010

Carfinco Rated A Rare Top Pick From Industrial Alliance

Carfinco Income Fund (TSX: CFN.UN)
Units issued: 23.9 million
Units fully diluted: 24 million
Current monthly distribution: $0.02
Q1/2010 special distribution: $0.04


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Record first quarter earnings from Carfinco last week resulted in what Industrial Allaince has called a "Valuation Game Changer." Analyst Fred Westra has upped IA's rating of Carfinco to a "Top Pick" which is only given to 3% of the companies that it is covering.

Units of Carfinco now have a 12 month target price of $6.00, a great leap from the $4.50 target that was set previous to the May 6th, Q1 earnings release. IA had estimated earnings per unit in Q1 to be $0.12 while in reality the number was substantially higher at $0.15.

There is considerable detail and comment in the IA update so we'll have it speak for itself.

See IA's May 7th report here..........

Please see below a short clip of Tracy Graf President & CEO of Carfinco Income Fund.