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

Overdone Sell-Off In DFC Global

Executive Summary

  • Shares of DFC Global (NASDAQ:DLLR) has sold of by more than 30% following reduced FY2014 guidance and below expected quarterly earnings.
  • Downgrades following earnings have increased magnitude of sell-off leading shares to be priced to disaster.
  • 12-16 month price target of $16.
  • Highly asymmetric risk/reward.


I first published an article on DFC Global on January 4, 2014, where I described why the stock as heavily undervalued and which catalysts that might change that going forward. One of the two mentioned catalysts has taken place, the deadline for the application of being lead plaintiff in a class action lawsuit against the company was January 24, 2014. Law firms have now stopped spamming out press releases urging...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details