A penny stock priced at 10 times earnings with future growth potential

  over a year ago at Macroaxis 
By David Taylor

Terra Firma Capital Corp. (TFCCF) is a Canadian real estate finance company.  The company specializes in bridge loans for developers and home-owners doing construction.  The company’s market capitalization is $35 million and the stock is trading at $0.489 per share, making this effectively a penny stock.  

 

[more]
 product technology   terra firma

Do not pass up a penny stock just because it is a penny stock.  There are solid earnings here and it is priced well below market averages.  If this stock were to continue and then meet up with the industry average for EPS ratio, the stock would double in price.  That is a significant opportunity for the savvy investor.  

Ellington Financial is a company that acquires asset-backed financial instruments.  This is exactly the kind of product that got the entire financial world into trouble in 2008.  So, how could I possibly even consider analyzing a company that works with that product?  Simple:  This company works with the same kinds of products that created the financial crisis.  

While I would equally be apprehensive to consider adding the product in to my portfolio, the sector in the industry has been beaten down so much that it is impossible to even consider not looking at the sector.  There is barely any interest in any company dealing with these products.  There is absolutely no surprise there.  That, however, is exactly the reason to get into the sector. 

 product finance   ellington financial financial services specialty finance real estate

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