Thursday, 13 June 2013

Carfinco Updates Top Investment Pro's

Tracy Graf – Investor Presentation, Ritz Carlton

Shares Outstanding: 26.4 million
Shares Fully Diluted: 26.4 million


Carfinco is currently on an extensive marketing trip between Toronto and Montreal aimed at both potential, as well as existing shareholders.  On Tuesday June 11th, CEO Tracy Graf presented an investor update to nearly 50 of Toronto’s top bankers, brokers, analysts and large shareholders at The Ritz-Carlton.
Mr. Graf discussed some of the potential reasons for the recent selloff, which has negatively affected the stock price since March this year.

The presentation that Mr. Graf gave is available below.

An updated report titled: CFN – Selloff Provides Buying Opportunity, written by Analyst Steve Boland at GMP Securities, followed Tuesday’s presentation.  In the report, Mr. Boland mentioned that management did a solid job in addressing some of the potential issues that are weighing on the share price of CFN and believes the selloff may be related to grouping CFN with other alternative lenders in the housing space, which is unwarranted.  He reiterated that he believes Carfinco is a BUY and targets the share price at $11.75.  Also on Tuesday, Jerome Hass, Partner at Lightwater Partners, was on BNN’s The Street’s “Bottom Feeding” segment where he discussed Carfinco as a buying opportunity, mirroring many of Mr. Boland’s comments.

In the segment, Mr. Hass mentioned he believes that the American investor looks at the Canadian economy with dire predictions for the housing sector and they see a subprime lender like Carfinco as a shorting target.  Between March 15th and April 15th of this year, the short position of Carfinco increased from 28,000 to 2.4 million shares.   Mr. Hass said that this can start the momentum of the stock price “heading south” and sometimes a stock going down gets a momentum of its own.