Monday, 9 August 2010

Carfinco Top Pick On BNN Market Call - Again

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
Q2/2010 special distribution: $0.10

In December 2009, Jason Donville, President and CEO of Donville Kent Asset Management rated Carfinco as his number one pick on BNN Market Call. At the time, Carfinco was trading at about $2.00 per unit. Things were looking positive for the fund as it came out of the recession with a couple of strong quarters behind it.

Fast forward to Friday August 6th when Mr. Donnville was once again on Market Call stating not only that Carfinco is his top pick but that he was still buying it at $4.50 last week. To date, this is a healthy return from the $1.45 when he first began building a position, last year.

His belief is that after the last record quarter Carfinco is valued at "$6.00 plus." He also mentioned that the return on equity is "through the roof" and he thinks that Carfinco could double its current distribution bringing it to a 10% yield and "still retain a bunch of its capital".

About Jason Donville, President & CEO, Donville Kent Asset Management

Jason has had an illustrious career as an award-winning analyst in both Asia and Canada. Prior to founding DKAM, Mr. Donville was consistently ranked as one of the top financial services analysts in the country. In 2004 and 2005, Mr. Donville was ranked in all three financial services research categories (banks, insurance and diversified financial services) in the annual Brendan Woods surveys. Mr. Donville was also recognized as the Top Stock Picker in Diversified Financial Services in the 2004 and 2005 National Post/Starmine surveys, and ranked number 3 for forecast accuracy in 2004 in the same survey.

To view the BNN interview, please click here