DLLR Bull Flag Breakout

If Dollar Financial is on fire, the Street is hardly noticing — even with the stock near a 52 week high. A financial services lion (operates a network of 1,269 stores doing over $320M in annual revs), DLLR specializes in serving under-banked customers. DLLR is making a name for itself as a low end disruptor, to borrow from Harvard’s Clayton Christenson. Low end disruptors seize the markets incumbents choose not to pursue. But working class individuals need to cash checks just like anybody else, and this is where DLLR steps in. We think that although the firm needs improvement on the profitability side of things, the company is briskly expanding and could be a much larger player in the years to come. We look favorably upon strong insider ownership; additionally, we like how the firm recently did a secondary offerring, which should simultaneously reduce debt, increase book, and give the firm a better valuation in the marketplace. We think the stock has gotten a depressed valuation b/c of the company’s leverage situation. Neverthless, we feel that as DLLR diversifies its businsses — and refinances its debt — shares could gravitate north of $25 by the end of the year.

While the pattern looks good, I suggest people to look at the accumulation/distribution technical indicator. There is a DIVERGENCE.

Look into this before investing.

oh yeah. i didnt notice that divergence. good eye

iwant the chart pattern very soon