Endeavor Financial is a household name in the resource sector.  Apart from identifying, and investing in successful investment opportunities, the company has recently created an advisory service, involved in mergers and acquisitions.

This new division has been a cash cow for shareholders, galvanizing their revenue stream and adding a significant amount to top line revenue.  In the past year Endeavor was involved in managing over $14 billion in M&A, generating nearly $50 million in advisory fee's.  As a result the company is able to reward its shareholders with a monthly dividend; recently doubled to 0.03/share.

On September4, 2008, Endeavour reported annual net income of US$56.5 million ($1.67/share) for the year ended June 30 and increasedtheir dividend by 100%

Other highlights for the yearincluded (taken from their latest audited financial statements):

• Revenues of US$108 million (including US$60 million investment incomeand US$48 million financial advisory fees);
• Adjusted EBITDA ofUS$72.9 million;
• Net income of US$56.5 million, or US$1.90/share;
• Paid US$4.1 million in dividends;
• Repurchased 520,200 common sharesat an average price of C$7.39 (C$3.8 million);
• Shareholders’equity increased from US$255 million (C$11.57/share) to US$370 million(C$12.38 per share);
• Book value per share was US$11.41compared to US$10.86 on June 30, 2007.

The heavy correction in the resource sector has proved challenging for EDV, however due to the strong M&A activity, they managed to keep top line revenue at par vs last year.

The stock has recently been sold down to adjust to the resource market's depressed levels, and its likely the company will adjust its 0.03 monthly dividend downward.  With only 33.7 million sharesoutstanding the company's market cap today stands at approximately $115million, or just 1.6x EBITDA.   Getting in at current levels ensures a higher leverage not only in dividend income for when the market begins to turn, but a general resumption upward in the share price.

Current market conditions have created a unique opportunity for EDV.  As most companies with advanced projects are being pressed to the wall with limited finance options, there is bound to be an increase in activity on the M&A and advisory end.

Any serious resource investor should take a closer look at EDV and add it to their watch list of undervalued bottom fish.