Friday, July 26, 2013

Why MicroFinancial Will Be the Market’s Next Ten-Bagger: MFI

It’s a very rare thing to find a potential ten-bagger like this. I think it’s only happened three or four times since I began investing in 1995. This is the kind of Peter Lynch stock that you catch when it’s an underfollowed microcap, that just happens to provide something people really need, and for which a highly fragmented market allows it room for potentially explosive growth.

MicroFinancial Inc. (MFI) also happens to operate in an area I have experience in. It’s part of the alternative finance sector that I’ve been working in for almost 10 years.

Peter Lynch always said to invest in something you understand, and in this case, it’s my expertise.

MFI leases business equipment and provides other forms of business and consumer financing. The businesses it assists might be startups, or they may be established. Even better, MicroFinancial doesn’t have to market directly to these businesses. A national network of equipment vendors, brokers and other dealers advertises on their behalf.  (more)

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