Stock Pick

[AceHigh]

I like Delta Financial Corp. (DFC) as a value stock. Good earnings report this morning, selling in the 10's, I think it could be around 20 by the end of the year. It's bouncing off a bad quarter and is under priced.


http://finance.yahoo.com/q?s=dfc

http://biz.yahoo.com/bw/040309/95323_1.html

PS - I'm thinking of getting out of KSS, if it drops much farther. Take my profits and run.

[adios]

Super low PE. I know some who have done well in this one. Wish I'd have bought it a year ago [img]/images/graemlins/smile.gif[/img]. But still might be a good buy. Haven't done enough dd on this one which is my bad.

[AceHigh]

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But still might be a good buy.

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With yesterdays earnings report, I think it's a very good buy. My portfolio is already over-weighted towards DFC or I would be thinking of buying more.

[BadBoyBenny]

A quick look at this company made me think that as long as rates stay low and refinancings continue then they'll continue to have these huge earnings. My guess is that this is one of those stocks that is super sensitive to the tone of the fed's commentaries, etc.

[AceHigh]

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that as long as rates stay low

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I would guess they would stay low in an election year, wouldn't you?

[PuppetMaster]

wondering wheather or not I should invest in this stock, from my research as a newbe I dont think interest rates are rising until 2005

[AceHigh]

Stay away until next year.

DFC has changed the way they are going to do there accounting. In the short term it means they will under report there earnings by taking expenses early. That's bad news for this years earnings reports.

Next year, taking the expenses early should show very good profits, especially compared to what will now be a bad year, 2004. But let's stay away and wait and see about that.

[BadBoyBenny]

I meant to point out interest rates as a risk factor, but not necessarily something that will be an immediate strain on their finances. The market will react ahead of a rate hike (or at least it usually does). But its just one thing to keep in mind.

[BadBoyBenny]

You are probably right about this causing a short term drop but i think it sounds like a good business move. It reads to me like it will provide a steady stream of cash flow if and when rate do go up and their core business declines.

[AceHigh]

Keep an eye on this stock. I think it will be a buy next year. But it's probably going to get beat up in the short term. From what I understand earnings will look bad this year, but it's a solid company.