Axis Auto Finance Inc T.AXIS

Axis - Roll Up Strategy Well Underway

[LendingGuru]

See attached Canaccord report. Looks like Axis Auto Finance is an up and comer that has not yet hit the radar screens of major investors. They are consolidating the fragmented subprime auto lending space, a space where economies of scale is the key to success.

Summary Below:

- Axis Portfolio has quadrupled as a result of recent acquisitions - growing to a $120mm portfolio. Market Cap is only ~$65mm.
- Fragmented sub-prime auto lending space across Canada presents further opportunity for Axis to add to the roll-up strategy. With Todd Hudson, former Element Financial COO, sitting as CEO, funding is likely not an obstacle. 
- Historical takeovers in this space are 4x NAV whereas the entities acquired by Axis were priced at 1.4x to1.8x. Likely further acquisitions would follow similar accretive value.
- Management expects a global footprint by the end of 2018 and to secure low cost funding from a syndicate of banks in the near term, a potential ~2x multiplier on net income.
- Insiders own 30% and have been buying in recent weeks!

I wouldn't be surprised if this is blue chip TSX stock paying significant dividend within a couple years. Thoughts?

https://canaccordgenuity.bluematrix.com/sellside/EmailDocViewer?encrypt=1f4ec6c4-070e-4e38-89a3-ae8eb3a136c4&mime=pdf&co=Canaccordgenuity&id=[e-mail]&source=mail

[Northup]

I am waiting for Q2 results.  If the growth comes in at what they are projecting I am going to take a large positon

[predawn]

my only concern is involving cannacrap Every time I see a stock get under written by these SB the stock falters afterwards i