Contact Information: Contact: Richard Oh Taglich Brothers, Inc. 631-757-1500
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.
The complete 19-page report is available at www.taglichbrothers.com.
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