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Investors have long -- stock tips by cab drivers signaled a market top but what about buying stock in the taxi business itself.
Taxi medallions are required to operate -- in many large cities including New York.
They were first issued in the Big Apple during the Great Depression back in 1937.
This little piece of ten sold for ten dollars each and -- -- grandfather -- one of the first badges and Medallion Financial was born the company has seen quite a return on that first investment and on hundreds more medallions -- bought since then.
Pullback in the late seventies but it's.
Her calves are cruising the streets of New York City taxing -- and I would set you back less than a 100000 dollars but now.
This piece a metal on the front of your cap.
We'll set you back more than a million bucks.
I don't think we never -- -- -- get a million dollar price they've gone up 15%.
Per year for seven years exactly as -- set up before -- -- -- -- NASDAQ realistic you name -- analyst marvel at the company's track record.
Unlike most banks Medallion Financial has never had a default on a taxi loan real estate lending somebody defaults on -- real estate loan.
It's years before the banks get their money back it's just terrific collateral the medallion again is just this little -- -- And if somebody doesn't pay you have the ability to repossess -- -- -- -- so literally you could pop this off the hood of the car and bring about or office.
With corporate medallions fetching more than one point one million bucks apiece and individual -- running 700000.
Some critics wonder if there's a bubble forming in medallion prices New York City is considering adding more medallions and that could -- the price of existing badges.
But since the city gets a cut of every sale in the secondary market analysts say that's -- strong incentive to keep supplies limited.
Medallion Financial bursting contends this limited supply -- badges plus low overhead offset concerns about the job in medallion prices.
These things have gone up nice and steady over time -- -- real estate real estate eat cash people have to pay maintenance people -- that they real estate taxes.
These are little cash house running around the city spitting out money.
Investors can tap into the company's cash -- since Medallion Financial trades on the NASDAQ.
Under the ticker taxi the quarterly dividend payout is at its highest level in at least a decade and during that time taxi has left the S&P 500.
In its rearview mirror.
Still the company's drive greater profits may be slowed -- borrowing cost rise -- an economic downturn leads that you were taxi rides.
And an increase in late payments by drivers.
In New York Robert Gray Fox Business.
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