Medallion Financial (NASDAQ:MFIN) provides loans to taxi drivers in New York City who want to buy a taxi medallion. While it may sound like the company has a nice niche market to work in, that market has recently been invaded by the likes of Uber and Lyft, which are turning the taxi business upside down. Because of these new threats, investors have been bailing out of Medallion in droves, sending the stock down 20% over the last year.
But according to Financials analyst David Hanson on today's Stock of the Day, it's this narrative that has hurt the company, not the fundamentals of Medallion itself. In fact, David wants investors to do some research themselves and not blindly buy into the idea that Medallion is going to be run out of town. He encourages investors to keep an eye on Uber and Lyft, but he's still confident in Medallion Financial.