This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

William Blair's 7 Favorite Financial Stocks for 2012

Stocks in this article: MA V MS AON WXS ONE DLLR

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

DFC Global (DLLR)

Company Profile: Formerly known as Dollar Financial, DFC Global offers financial services to unbanked and under-banked consumers and small business owners, many of whom receive income on an irregular basis or from multiple employers.

Share Price: $18.87 (Dec. 6)

2011 Return: -1.2%

Investment Thesis: William Blair analysts don't mince words when talking about DFC Global; They argue the market opportunity is "significant" and that business trends are strong and accelerating in the U.K. and Europe and remain solid in U.S. and Canada.

"We believe DFC is well positioned to provide alternative financial services to the 2.5 billion underserved/underbanked consumers worldwide (about 60 million in the United States) given its diverse product offering, geographic diversity, and strong balance sheet," the analysts write.

They add that DFC's recent acquisitions provide platforms for growth. "We believe DFC's acquisition pipeline remains active and that DFC will focus primarily on using its recent U.K. and Scandinavian pawn acquisitions as platforms for expansion in existing and adjacent European markets," they add.

Shares of DFC have fallen hard in recent weeks due to regulatory concerns in the U.K., although William Blair analysts say the selloff is overdone. "A November 2011 review published by HM Treasury increases our conviction that the U.K. government wants to make sure consumers have access to high cost loans with proper disclosures," they add.






Crawford & Co. (CRD.B)

Company Profile: Crawford & Co. is the world's largest independent provider of claims management solutions to insurance companies and self-insured entities.

Share Price: $5.87 (Dec. 6)

2011 Return: 72.7%

Investment Thesis: William Blair analysts argue that Crawford "is a classic example of an underutilized marquee franchise."

"Jeffrey Bowman, CEO since 2008, has a track record of success at the company, turning the international property and casualty insurance segment into a profit driver for the firm," the analysts write. "We believe that current management has the ability to significantly turn the company around."

The analysts say the company should benefit from improving claims trends and that a return to secular growth is possible over the next several years. They also argue there is potential for significant upside to 2012 estimates thanks to the potential for a faster rebound in Broadspire.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

>>To see these stocks in action, visit the William Blair's 7 Favorite Financial Stocks for 2012 portfolio on Stockpickr.

-- Written by Robert Holmes in Boston.



>To contact the writer of this article, click here: Robert Holmes.

>To follow Robert Holmes on Twitter, go to http://twitter.com/RobTheStreet.

>To submit a news tip, send an email to: tips@thestreet.com.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
4 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs