Colin Stewart Clairvest Group Inc CVG-T PAST TOP PICK Mar 27, 2012

CVG is a low market beta Canadian based private equity firm with over $3.3 billion invested in various small commercial operations.  It boasts a 24% ROE and trades at 5x earnings.  Cash reserves are growing while they buy back shares.  They just made another acquisition into a US dental practice that should be accretive to earnings.  We recommend setting a stop-loss at $70, looking to achieve $100 — upside potential of 18%.  Yield 0.1%

We reiterate CVG as a TOP PICK.  The company is partnering with a New Hampshire gaming operator - the company's 62nd investment - building on their 23 year track record in the gaming industry.  It trades at 4x earnings, under book value and supports a ROE of 24%.  We continue to recommend a stop-loss at $70, looking to achieve $100 -- upside potential of 20%.  Yield 0.1%   

Our PAST TOP PICK with CVG is progressing well.  To be disciplined, we recommend trailing up the stop (from $70) to $80 at this time.  

Our PAST TOP PICK with CVG has triggered its stop at $80.  To remain disciplined, we recommend covering the position at this time.  Combined with the previous buy recommendations, this will result in a net investment loss of 5%.