Not so fast.....legitimate lawsuits looming...Informed investors should know the history of the demise of the Pre-paid card revenue for DCI. Once at well over $10 Million a quarter in Gross Profit, now down to virtually zero.
Their Primary Customer, the now defunct Cash Store, was successfully sued in multiple provinces. DCI was generally listed as a co-defendant, but maintained an indemnity situation guaranteed by the Cash Store. Now the Cash Store is no more, there's no indemnity protection.
With the smell of blood in the water, and some significant cash flowing quarterly, the sharks (lawyers) have now turned their attention to DCI.
https://www.biv.com/article/2015/6/lawsuit-week-payday-loan-borrowers-claim-payment-p/
This lawsuit, and as I undstand a few others in other provinces, are specifically targeting DCI. Of course, Jeff has stated through the MD&A that they have no merit and will defended vigorously, but that's also what the Cash Store stated before they were forced to fork over tens of millions in settlement.
The best case scenario for DCI is that they will be paying hundreds of thousands in legal fees and fighting pitched battles over numerous provinces over the short term until the lawsuits are either dismissed or eventually won. The worst case is that they end up forking over substantial sums in each province where a class action is launched.
Now, I'm not a lawyer, I don't play one on TV, nor did I stay at a Holiday Inn Express last night, but dang.....that's a strong sounding argument that the class action is making.
And remember.....don't shoot the messenger (me). I'm just performing my patriotic duty in helping to keep everyone informed...GLTA