Imperial Holdings: Large Upside Potential

A New York presenter recommends Imperial Holdings (NYSE: IFT, $9.74). The company has carved out a leading position in a very niche market of life insurance premium financing. IFT IPO'd back in February and now has sufficient capital to finance on its own, as opposed to borrowing from third parties at prohibitive cost. The company's structured settlements business is now breaking even and growing briskly with repeat business becoming more and more prevalent. The CEO has solid background in the space and has taken another company public, which was later sold at a favorable valuation. The stock is trading at book at the moment. The presenter believes the book value should grow at a mid-teen rate in the next few years and the stock then could trade up to 3x book.