Avigilon Corp (AVO.TO)

Stock has had tremendous success. This is in technology. As you know, you start out with a product and other people come along and imitate. Your margins get eroded. If you own and have made profits, as a general rule, he would take some profits.

Still in the infinitesimal market share of a very, very large market. Have about 3% market share of high-definition video surveillance at this point and are the best in the business. There is more to go in this stock. There is talk that they could be added to the index, which could be another source of buying. Stock is growing at 100% a year, and is very, very difficult to value, so be careful with selling it too soon. If it got to $50, he would start trimming.

(Market Call Minute.) Hit a new high. Camera technology is great.

High definition video cameras and surveillance systems. Operate in a fragmented business. High earnings growth and high sales growth with positive free cash flow, which is very unusual in a growth company. 16% trailing ROE, which is expected to double in 2014 to 34%. Still lots of opportunity.

Basically a security surveillance company. In a long upward channel so acquire at the bottom of the channel and reduce when it touches the top of the channel.

Outstanding technology but he thinks on valuation that the stock is rich. He questions if they can sustain the growth rate that they have had and this is why the stock is starting to flatten out.

Provides complete end to end high definition surveillance cameras, recording devices and monitoring. They can mix and match existing analog networks. Their products are better and less expensive than competitors. Distributors who sell the products end up making more commission. Earnings are expected to grow 75% both this year and next. Attractively priced.

Security surveillance. Very competitive business. This one has done very, very well. The chart and recent news tells him this is probably going to go higher. Not a cheap stock with something like 30X forward earnings.

When a company is growing like this one, they have to finance and one of the ways is by raising more equity. Growing pains of a great growth company. However, this company does not have a lot of recurring revenue so he has taken a pass on this. Thinks it is getting expensive, but so far he has been wrong.