Wednesday, July 10, 2013

My Stock of the Day: MFI


MicroFinancial, Inc. (MFI) is based in Burlington, Mass., and came to life in 1987. Its primary focus is to lease a wide range of equipment to start-up businesses.
Given an improving economy, and common sense, now seems to be an opportunity to acquire its stock.
My 5-year Yahoo chart shows remarkably sharp ups and downs in the stock’s price performance. Also, it suggests MFI is not for the faint of heart. 
My 3-month chart suggests the stock may again be on a sharp up trend, coming out of the market’s spring pullback.
MFI is high among the AAII price-to-free-cash-flow stock-acquisition strategy, which had double-digit annual gains for the last 10, 5, and 3 years. In 2013 through May 31, it was up 29.0%, compared with +14.3% for the S&IP 500. And:
Just now, a consensus of Yahoo’s stock analysts lists MFI as a strong buy.
Never forget this: All investments and savings are gambles on the unknowable future and thus subject to loss.

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