RE:Analyst Recommendation Quite the lineup of analyst recommendations and upgrades recently. $11.2 million in recent personal insider investment, a new highly accretive acquisition (PHH), tax deferrals up to 10 years, impending credit upgrades, stronger than forecast growth in all 4 verticals. A little patience may be required as the market digests the latest deal but predicted to be the "fastest growing finance company in Canada in 2015-16" in a market desperate for growth stories. $15-$16 predicted to happen quickly, and up to $20 in 12 - 18 months.
I like the suggestion of Element as a lateral investment in the rail industry, whereas the rails themselves have already made big moves. New rail cars are increasingly going to be needed to move oil.
The analyst mentions Element's deal with Trinity (TRN,N) the leading railcar manufacturer and lessor in North America. This is the deal announced in December "to provide lease financing for up to US$2 billion worth of railcars over the next two years ... Railcar financing complements our other core equipment financing verticals by offering attractive yields, access to reliable and proven funding structures, efficient originating and operating costs and low credit losses backed by long life assets that are in high demand" (CEO Hudson).