A little over a month ago, I recommended buying shares in a company called Data Group Inc. (OTCPK:DGPIF), a Canadian small-cap company that specialized in document management and direct marketing services. The company had a dividend payout yield of 19% and the main thesis was that the market had overshot its mark in terms of bidding down the stock based on the following reasons:
· The current dividend was well covered at only 40-50% of free cash flow
· The company had implemented an aggressive cost cutting program that was taking substantial fixed cost out of the business
· The company had implemented several new product offerings, the benefit of which was expected to be felt in...
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