There is no greater buying opportunity than when a mistaken thesis about a company causes its stock to fall. If that stock happens to fall below the company’s tangible book value, you are being handed a golden opportunity. That’s what’s happened with Medallion Financial Corp (TAXI) … and that’s why I’ve gone long TAXI stock.
Medallion Financial made its bones by lending against taxi medallions, which are licenses to drive a yellow taxi cab in various cities (primarily New York). Medallions are limited in supply because of regulation. In New York, that regulation was passed in 1937, and the number of licenses remained unchanged for the next several decades at about 11,500. Only recently have another 2,000 medallions been auctioned by the Taxi and License Commission.
Source: InvestorPlace
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I wrote about TAXI a few months back http://ow.ly/J330U and have to agree that this one seems like a pretty solid dividend payer especially from its finance division and limited competition from traditional businesses. Of course, ride sharing companies are encroaching on these old world businesses and may impact future earnings.