Mike Arnold
Long only, small-cap, tech, growth at reasonable price

Exchange Income Corporation Still Looks Undervalued

(Editor's note: Trading of EIFZF is highly illiquid. Improved liquidity can be found through the Toronto Stock Exchange listing EIF.TO.)

Exchange Income Corporation (OTC:EIFZF) ("EIF") is a diversified holding company, primarily engaged in niche, diversified manufacturing and aviation businesses.

The shares remain stubbornly undervalued, and have been range bound since I recommended them in late November.

Currently valued at $450 million, EIF throws off reliable cash flow from its diversified operations and its dividend yield remains at elevated levels, a large 8% yield (the dividend is paid monthly).

I view EIF as a more concentrated, mini Berkshire Hathaway (BRK). Similar to Berkshire, the EIF business model is driven by disciplined acquisitions, generally limiting purchase prices to...

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