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.

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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...

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