Money Flow Index - MFI

Type: Public
On the web: http://www.microfinancial.com
Employees: 118
Employee growth: 6.3%

MicroFinancial thinks big when it comes to leasing small-ticket commercial items to small and midsized businesses. Through subsidiary TimePayment, MicroFinancial leases items that are generally valued between $500 and $15,000. Although the "microticket" leaser provides financing for a variety of office and commercial equipment, the majority of the contracts in its portfolio are for point-of-sale authorization systems for debit and credit cards. It doesn't lease and rent equipment directly, but through a network of independent dealers across the US. Internet-based TimePaymentDirect processes applications and approves credit; Insta-Lease provides the same services via telephone, fax, and e-mail.

Key numbers for fiscal year ending December, 2010:
Sales: $50.9M
One year growth: 10.3%
Net income: $5.3M
Income growth: 28.3%

Officers:
Chairman: Peter R. Bleyleben
President, CEO, Secretary, Treasurer, Clerk, and Director: Richard F. Latour
VP and CFO: James R. Jackson Jr.

Competitors:
CalFirst
CIT Group
ECHO, Inc.

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A momentum indicator that is used to determine the conviction in a current trend by analyzing the price and volume of a given security. The MFI is used as a measure of the strength of money going in and out of a security and can be used to predict a trend reversal. The MFI is range-bound between 0 and 100 and is interpreted in a similar fashion as the RSI.
 
 

The money flow index is calculated by using the following formula:

Typical Price = (High + Low + Close) / 3
Money Flow = Typical price * Volume
Money Ratio = Positive Money Flow/Negative Money Flow

Note: Positive money values are created when the typical price is greater than the previous typical price value. The sum of positive money over the number of periods used to create the indicator is used to create the positive money flow - the values used in the money ratio. The opposite is true for the negative money flow values.

Money Flow Index = 100 - (100/ (1 + Money Ratio))

Investopedia Says:
The money flow index is similar to the relative strength index (RSI). The fundamental difference is that the MFI also accounts for volume, whereas the RSI only incorporates price. Many traders watch for opportunities that arise when the MFI moves in the opposite direction as the price. This divergence can often be a leading indicator of a change in the current trend.

Related Links:
Learn how this indicator uses both price and volume to record a more complete picture of price action. The Basics Of Money Flow