Abdalla Al-ayrot
Long only, deep value, special situations

Misunderstood Regulatory Situation Presents Multi-Bagger Opportunity In DFC Global

The shares of DFC Global Corporation (NASDAQ:DLLR) trade at a deep discount to their intrinsic value. The shares trade at a P/FCF multiple of less than two and a 1-year forward P/E of 4.89. Investors have panicked due to regulatory changes in the UK payday market.

The regulatory transformation has settled and the company's competitive position in the UK has strengthened as a result. The regulation will be forced upon all players from April 1, 2014.

The market is furthermore not pricing in the company's restructuring undertaken in late 2013, due to the slur that the non-recurring fees associated with complying with the new regulatory climate has caused.

The following factors have the potential of acting as catalysts...

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