John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

DFC Global Undervalued After An Overreaction To Increasing Regulation

DFC Global (NASDAQ:DLLR) is attractive after a decline caused by new U.K. regulations and a temporary spike in loan losses. Once the current regulatory fears subside, DLLR should trade higher given its product and geographic diversification as well as favorable long-term industry outlook.

Company overview

DLLR provides under-banked customers alternative financial products and services through 1,457 locations as well as internet platforms in Canada, the U.S., Sweden, Ireland, Spain, Finland, Poland, Czech Republic and the U.K.

Products and services provided include unsecured short-term consumer loans, secured pawn loans, check cashing, money transfers (through a strategic alliance with Western Union), reloadable prepaid debit cards, gold-buying services, electronic tax filing, foreign currency exchange as well as fee-based services to military...

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