Currency Exchange International Corp. (CURN)

[stocktrademan]

$CURN DD Notes ~ http://www.ddnotesmaker.com/CURN

bullish

$CURN recent news/filings

## source: finance.yahoo.com

Thu, 16 Oct 2014 13:23:05 GMT ~ Currency Exchange International Announces New Agreements with Nine Financial Institutions

[Marketwired] - Currency Exchange International, Corp. , a leading provider of foreign currency exchange services in North America, is pleased to announce that since July 31, 2014 the Company has signed new agreements ...

read full: http://finance.yahoo.com/news/currency-exchange-international-announces-agreements-132305859.html
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Tue, 09 Sep 2014 23:37:11 GMT ~ Currency Exchange International Announces Financial Results for the Three and Nine Month Periods Ended July 31, 2014

[Marketwired] - Currency Exchange International, Corp. , is pleased to announce its financial results and present its management's discussion and analysis for the three and nine month periods ended July 31, 2014 . The ...

read full: http://finance.yahoo.com/news/currency-exchange-international-announces-financial-233711814.html
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Wed, 09 Jul 2014 17:05:38 GMT ~ Currency Exchange International Appoints New Director and Chief Anti-Money Laundering Officer

[Marketwired] - Currency Exchange International, Corp. is pleased to announce that Ms. Linda A. Stromme will join the Company Board as an Independent Director and will be appointed to the Audit Committee, subject to regulatory ...

read full: http://finance.yahoo.com/news/currency-exchange-international-appoints-director-170538880.html
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Wed, 04 Jun 2014 12:28:56 GMT ~ Currency Exchange International Announces Financial Results for the Three and Six Month Periods Ended April 30, 2014

[Marketwired] - Currency Exchange International, Corp. , is pleased to announce its financial results and present the management's discussion and analysis for the three and six month periods ended April 30, 2014 . The ...

read full: http://finance.yahoo.com/news/currency-exchange-international-announces-financial-122856847.html
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Fri, 28 Mar 2014 20:52:15 GMT ~ Currency Exchange International Closes Transaction with U.S. Exchange House

[Marketwired] - Currency Exchange International, Corp. , further to its press release dated March 20, 2014, announces today that its subsidiaries, Currency Exchange International America Corp. and Currency Exchange International ...

read full: http://finance.yahoo.com/news/currency-exchange-international-closes-transaction-205215055.html
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$CURN charts

basic chart ## source: stockcharts.com



basic chart ## source: stockscores.com



big daily chart ## source: stockcharts.com



big weekly chart ## source: stockcharts.com


$CURN company information

## source: otcmarkets.com

Link: http://www.otcmarkets.com/stock/CURN/company-info
Ticker: $CURN
OTC Market Place: OTC Pink Current
CIK code: 0001448167
Company name: Currency Exchange International Corp
Company website: http://www.ceifx.com
Incorporated In: British Columbia, Canada

Business Description: Currency Exchange International was incorporated in Florida in 1998. Its primary business lines are retail and wholesale foreign exchange. Products include currency exchange, travelersÂ? checks, foreign check clearing, and international wire payments.CXI services over 30 company owned retail branches, affiliate retail locations, and agent locations. Its corporate office is located in Orlando, Florida. CXIÂ?s Miami office serves as the hub for CXIÂ?s retail locations and all wholesale trading with pre-approved clients. CXI provides services to a variety of corporations, travel companies, Money Service Businesses and other hospitality related companies that have international trade or clientele.Less >>


$CURN share structure

## source: otcmarkets.com

Market Value: $75,505,326 a/o Nov 28, 2014
Shares Outstanding: 3,872,068 a/o Sep 30, 2012
Float: Not Available
Authorized Shares: Not Available
Par Value: Not Available
$CURN extra dd links

Company name: Currency Exchange International Corp
Company website: http://www.ceifx.com

## STOCK DETAILS ##
After Hours Quote (nasdaq.com): http://www.nasdaq.com/symbol/CURN/after-hours
Option Chain (nasdaq.com): http://www.nasdaq.com/symbol/CURN/option-chain
Historical Prices (yahoo.com): http://finance.yahoo.com/q/hp?s=CURN+Historical+Prices
Company Profile (yahoo.com): http://finance.yahoo.com/q/pr?s=CURN+Profile
Industry (yahoo.com): http://finance.yahoo.com/q/in?s=CURN+Industry

## COMPANY NEWS ##
Market Stream (nasdaq.com): http://www.nasdaq.com/symbol/CURN/stream
Latest news (otcmarkets.com): http://www.otcmarkets.com/stock/CURN/news - http://finance.yahoo.com/q/h?s=CURN+Headlines

## STOCK ANALYSIS ##
Analyst Research (nasdaq.com): http://www.nasdaq.com/symbol/CURN/analyst-research
Guru Analysis (nasdaq.com): http://www.nasdaq.com/symbol/CURN/guru-analysis
Stock Report (nasdaq.com): http://www.nasdaq.com/symbol/CURN/stock-report
Competitors (nasdaq.com): http://www.nasdaq.com/symbol/CURN/competitors
Stock Consultant (nasdaq.com): http://www.nasdaq.com/symbol/CURN/stock-consultant
Stock Comparison (nasdaq.com): http://www.nasdaq.com/symbol/CURN/stock-comparison
Investopedia (investopedia.com): http://www.investopedia.com/markets/stocks/CURN/?wa=0
Research Reports (otcmarkets.com): http://www.otcmarkets.com/stock/CURN/research
Basic Tech. Analysis (yahoo.com): http://finance.yahoo.com/q/ta?s=CURN+Basic+Tech.+Analysis
Barchart (barchart.com): http://www.barchart.com/quotes/stocks/CURN
DTCC (dtcc.com): http://search2.dtcc.com/?q=Currency+Exchange+International+Corp&x=10&y=8&sp_p=all&sp_f=ISO-8859-1
Spoke company information (spoke.com): http://www.spoke.com/search?utf8=%E2%9C%93&q=Currency+Exchange+International+Corp
Corporation WIKI (corporationwiki.com): http://www.corporationwiki.com/search/results?term=Currency+Exchange+International+Corp&x=0&y=0
WHOIS (domaintools.com): http://whois.domaintools.com/http://www.ceifx.com
Alexa (alexa.com): http://www.alexa.com/siteinfo/http://www.ceifx.com#
Corporate website internet archive (archive.org): http://web.archive.org/web/*/http://www.ceifx.com

## FUNDAMENTALS ##
Call Transcripts (nasdaq.com): http://www.nasdaq.com/symbol/CURN/call-transcripts
Annual Report (companyspotlight.com): http://www.companyspotlight.com/library/companies/keyword/CURN
Income Statement (nasdaq.com): http://www.nasdaq.com/symbol/CURN/financials?query=income-statement
Revenue/EPS (nasdaq.com): http://www.nasdaq.com/symbol/CURN/revenue-eps
SEC Filings (nasdaq.com): http://www.nasdaq.com/symbol/CURN/sec-filings
Edgar filings (sec.gov): http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001448167&owner=exclude&count=40
Latest filings (otcmarkets.com): http://www.otcmarkets.com/stock/CURN/filings
Latest financials (otcmarkets.com): http://www.otcmarkets.com/stock/CURN/financials
Short Interest (nasdaq.com): http://www.nasdaq.com/symbol/CURN/short-interest
Dividend History (nasdaq.com): http://www.nasdaq.com/symbol/CURN/dividend-history
RegSho (regsho.com): http://www.regsho.com/tools/symbol_stats.php?sym=CURN&search=search
OTC Short Report (otcshortreport.com): http://otcshortreport.com/index.php?index=CURN
Short Sales (otcmarkets.com): http://www.otcmarkets.com/stock/CURN/short-sales
Key Statistics (yahoo.com): http://finance.yahoo.com/q/ks?s=CURN+Key+Statistics
Insider Roster (yahoo.com): http://finance.yahoo.com/q/ir?s=CURN+Insider+Roster
Income Statement (yahoo.com): http://finance.yahoo.com/q/is?s=CURN
Balance Sheet (yahoo.com): http://finance.yahoo.com/q/bs?s=CURN
Cash Flow (yahoo.com): http://finance.yahoo.com/q/cf?s=CURN+Cash+Flow&annual

## HOLDINGS ##
Major holdings (cnbc.com): http://data.cnbc.com/quotes/CURN/tab/8.1
Insider transactions (yahoo.com): http://finance.yahoo.com/q/it?s=CURN+Insider+Transactions
Insider transactions (secform4.com): http://www.secform4.com/insider-trading/CURN.htm
Insider transactions (insidercrow.com): http://www.insidercow.com/history/company.jsp?company=CURN
Ownership Summary (nasdaq.com): http://www.nasdaq.com/symbol/CURN/ownership-summary
Institutional Holdings (nasdaq.com): http://www.nasdaq.com/symbol/CURN/institutional-holdings
Insiders (SEC Form 4) (nasdaq.com): http://www.nasdaq.com/symbol/CURN/insider-trades
Insider Disclosure (otcmarkets.com): http://www.otcmarkets.com/stock/CURN/insider-transactions

## SOCIAL MEDIA AND OTHER VARIOUS SOURCES ##
PST (pennystocktweets.com): http://www.pennystocktweets.com/stocks/profile/CURN
Market Watch (marketwatch.com): http://www.marketwatch.com/investing/stock/CURN
Bloomberg (bloomberg.com): http://www.bloomberg.com/quote/CURN:US
Morningstar (morningstar.com): http://quotes.morningstar.com/stock/s?t=CURN
Bussinessweek (businessweek.com): http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=CURN



$CURN DD Notes ~ http://www.ddnotesmaker.com/CURN

[protagonist12]

Operating in a niche industry providing small orders (less than $2.5K) for physical foreign currency in specific denominations, Currency Exchange is a focused operator beginning to achieve scale and associated operational leverage. The company is both well capitalized for future growth and increasing liquidity which should attract institutional investors in United States and Canada to the name. Furthermore, a near-term hard catalyst is on the horizon as CXI wraps up its process and approval in becoming a Canadian banker's bank. Once transitioning to a banker's banks, margins will expand by 15% (currently not reflected in market valuation).

Currency Exchange is trading at less than 20x net income pre-banker's bank catalyst and less than 7x fiscal 2015 EBITDA/~10x FY2014 run-rate EBITDA (note: we do not deduct cash from EV for CXI, in this case would represent ~$32MM in incremental value/ or 40% of the current market capitalization). Recently Travelex just sold for ~25x to 30x net income and 13x EBITDA. These levels of valuation also justify the $23 to $25 price target.

A position in Currency Exchange is merited by the following attributes:

Competitive Position Currency Exchange is the third largest participant in its niche and is the only non-bank participant, hence it has experienced significant tailwinds in capturing new business (generally regional and local banks). CXI has a differentiated and superior technology offering, partially due to their focus exclusively on currency solutions vis-à-vis peers such as Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC). Focused non-competitive partner of local banks. Regional banks do not want their private data going to rivals such as Bank of America or Wells Fargo who may attempt to compete with profitable branch locations as much as possible.
Favorable Industry Dynamics with Strong Returns on Capital and Re-investment Opportunities

Foreign currency procurement is a low capital intensity, recurring revenue service business. Due to the asset-light nature of the business, CXI has consistently generated returns on capital in excess of 15%, even when including one-time costs. Inventory carries low risk (inventory currency hedged daily). Although a niche field, private equity and financial services conglomerates have been attracted to this field. Competitors infrequently compete significantly on price as a way to win new business.

The wholesale currency exchange logistics business carries significant barriers to entry for both large banks and new competitors. This is partially due to the "network" effect and infrastructure needed.
Attractive Valuation

Impressive margin profile, with EBITDA margins in excess of 25%. The company currently trades at ~10x 2014E EBITDA (EV not deducting $32MM in cash) & is worth at least 13x given organic growth and precedent transactions. CXI is a cash flowing business unlikely to need additional equity capital in the short and intermediate term. Precedent transactions have occurred anywhere from 12.5x to 36.5x EBITDA, with the low end slated towards retail providers. Given CXI's asset-light business model, low CapEx needs and embedded sales base, at minimum CXI would demand a 15x EBITDA multiple in the private markets, which would amount to a ~$20 share price excluding a true up, which would be in line with our upside case.
Steady & Consistent Cash Flow Model

Once the current business ramps up EBITDA above $10MM to $20MM, CXI will be able to take on conservative amount of leverage. While we do not model such a scenario in our valuation section, we believe a dividend recapitalization when appropriate could accelerate the realization of value. EBITDA to OCF conversion is one of the highest we've seen, with a ~95% or higher conversion rate. Hence, EBITDA rapidly falls down to the bottom line and is not caught up in maintenance capex.
Operating Leverage

With 4 vaults including a 5x increase in vault operations staff, a scalable platform, and a growing cadre of banks working through the sales pipeline, CXI is poised to begin earning new client revenue which will increasingly fall to the bottom line. Foreign currency funding costs will decrease 15% to 20% once the banking charter is approved (we believe late Q4 to Q1 2015) as CXI will have the ability to go to the US Federal Reserve banks and the Bank of Canada for currency instead of a large bank acting in a wholesale capacity.

Becoming a banker's bank will allow CXI to sign large banking clients in both the US and Canada which have been hesitant (compliance etc.) given CXI's money service business regulatory status.
Experienced Management Team and Owner-Operator

Management is well-versed in the business and aligned with shareholders. Founder and CEO Randolph Pinna owns 25% of the business and is thusly highly incentivized to maximize shareholder return. Mr. Pinna started the predecessor business (Foreign Currency Exchange- now owned by Wells Fargo) in 1987, sold FCE to the Bank of Ireland in 2003, and led the carve-out of what would become CXI in 2007.

http://seekingalpha.com/article/2493995-currency-exchange-international-compounding-cash-machine-at-a-deep-discount-to-private-market-peers