SOURCE: Carbiz Inc.

October 10, 2008 09:30 ET

Taglich Brothers Initiates Coverage of Carbiz Inc.

NEW YORK, NY--(Marketwire - October 10, 2008) - Taglich Brothers, Inc. announces it initiated coverage of Carbiz Inc. (OTCBB: CBZFF).

Carbiz Inc. (OTCBB: CBZFF), headquartered in Sarasota, Florida, operates used car retail lots on the Buy-Here/Pay-Here model, selling vehicles to customers of limited means and damaged credit histories. The company's used car lots, concentrated mainly in the Midwest US, are located as follows: Indiana (7), Illinois (6), Oklahoma (4), Florida (2), Iowa (2), Nebraska (2), Ohio (1), Kentucky (1) and Texas (1). The markets around each of the lots are broadly defined as a 25-mile radius, within which the company directs print, radio and television at prospective customers. In recent months, selling prices at the Carbiz lots have ranged from $9,000 to $11,000. The company procures its inventory from vehicle auctions.

Carbiz aims to increase auto sales, partly by implementing a Tier 2 lending program centering on higher-price vehicles, and improve its credit loss experience (and operating margins) by upgrading the quality of its loan portfolio. Opportunistic acquisitions are a possibility. Management believes that its prior history in the software and consulting business that served Buy Here-Pay Here auto dealers places the company in a position to make synergistic acquisitions. While current conditions in the credit markets make securitization impractical, management believes that its credit screening will ensure receivables quality that qualifies its portfolio for securitization.

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Taglich Brothers, Inc. is a full-service broker dealer focused exclusively on microcap companies. The Company defines the microcap segment of the equity market as companies with less than $250 million in market capitalization. Taglich Brothers currently offers institutional and retail brokerage services, investment banking and comprehensive research coverage to the investment community.

We do not undertake to advise you as to changes in figures or our views. This is not a solicitation of any order to buy or sell. Taglich Brothers, Inc. is fully disclosed with its clearing firm, Pershing, LLC, is not a market maker and does not sell to or buy from customers on a principal basis. The above statement is the opinion of Taglich Brothers, Inc. and is not a guarantee that the target price for the stock will be met or that predicted business results for the company will occur. There may be instances when fundamental, technical and quantitative opinions contained in this report are not in concert. We, our affiliates, any officer, director or stockholder or any member of their families may from time to time purchase or sell any of the above-mentioned or related securities. Analysts and members of the Research Department are prohibited from buying or selling securities issued by the companies that Taglich Brothers, Inc. has a research relationship with, except if ownership of such securities was prior to the start of such relationship, then an Analyst or member of the Research Department may sell such securities after obtaining expressed written permission from the Director of Research. As of the date of this report no Taglich Brothers, Inc. employees had a position in the stock of the Company mentioned in this report: All research issued by Taglich Brothers, Inc. is based on public information. In October, 2008, the company paid a monetary fee of US$6,000 representing payment for the first three of 12 months, for the creation and dissemination of research reports. From February, 2009 through September, 2009, the company will pay a monthly monetary fee of US$2,000, for a total one-year fee of US$24,000 for the creation and dissemination of research reports.

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