BLVD Centers Corp (CXV.V)

Has a small piece of this in his growth fund. This is really a cash flow business. They are in substance rehabilitation. Bought their initial business in LA and are now growing out and making acquisitions, but have also been building and seeing phenomenal growth. Have 2 pods in LA and are going to be adding one in San Francisco. Really high margins. Revenues are all in US$.

(Market Call Minute.) He wouldn’t bother with this name.

This is a name, a stock, a chart that is irrelevant to him. He would never tell someone not to buy this. Would never do technical analysis on something like this, because it is a $0.29 stock. It is something that needs to be owned because you like it.

Chart shows a sideways consolidation pattern and doesn’t seem to be going anywhere right now. Often when looking at penny stocks, there are fewer players, so you often get low volume and low conviction movement. He probably would not touch the stock unless it broke out of the consolidation.

If you start to see the economy slowing down, this is one that is recession proof. They have rehabilitation centres for substance abuse. Have a couple of Pods now. Their Pods are multiple different faceted businesses. Have 2 in Los Angeles and are just starting to move into San Francisco. Trading at a super cheap value from a cash flow perspective. It is a real cash flow generating machine. With Obamacare and the Parity Act coming through, it really opens up their market. A huge growing business that is really “mom-and-pop” now, so anyone with access to capital, like they do, can go out and really build a solid business. Tax loss selling has really hurt them in the last few months. Once that is finished, this is going to have a great 2016.

Addiction rehab. Doesn’t know the company well, but does know the group that is behind it. The relative valuation is more attractive with Patient Home Monitoring (PHM-X) if you want to be in this family. If you want to have a flyer, you can buy almost anything in the healthcare sector. However, if you want to buy a high-quality name that is on sale, check out his Top Picks.

We have a low and then a higher low, so watch for a pivot point. It is probably okay. Just don’t let it go below the early October low. Don’t add to it.

They found that rehabilitation for substance abuse in the US is extremely hard to get into because of legislation and changes that have been made to insurance. As a result, this company has been making acquisitions of different rehab facilities. A great cash flow machine. They are cash flow and earnings positive.

Drug rehab for Hollywood stars. He thinks it is fine. It is reasonable to buy it here. He would not buy PHM right now due to an equity financing.

A rollup strategy for addiction centres. The management team and why this stock has sold off, pretty much go hand-in-hand. From an operational and business standpoint everything continues to go really well. Have their 1^st clinic in LA, and the 2^nd one is just up and running now. Had great success with the 1^st one and increased their revenue by about 300% in less than a year. About $0.11 of the stock price is cash, and they are generating about $0.05 a year in cash. More than 50% of the value is in cash. Thinks there will be a lot of acquisitions over the next few years and there will be organic growth as well. We are in a market that doesn’t really like what happened with their other operation, Patient Home Monitoring (PHM-X). Feels the fundamentals are strong.

Convalo has 30 million dollars of cash and a market cap of about 45 million. Revenues as of the 2^nd quarter of this year were about 3.5 million., plus they have made some acquisitions.. Feels they will make about 10 million this year. Their gross margins are about 70%. Thinks it is a good time to buy. Estimated P/E 26.50. He recommends that you wait 2 weeks before buying as there might be a wave of selling in the next few weeks.

This is pursuing a conglomeration of centres for addiction treatment. Quite heavily focused in Texas. They are being treated in kind of luxurious premises. This will probably work. He intends to continue holding his stocks.

Another of the Michael Dalsin companies (Patient Home Monitoring – (PHM-X).). This is his 2^nd one and Inspire is the 3^rd. This company is on a similar strategy. They are rolling up US rehabilitation centres for substance abuse issues. The market is very fragmented. There are a ton of different small operators out there, and this company has started to acquire these centres. They have seen some fantastic organic growth from their 1^st acquisition, and he thinks this will continue. With the way the stock has pulled back, this is one that he would Buy now.

Given all his options, he doesn’t know if he is much of a believer in the addiction space as a consolidated play as in some other areas that they are operating in. His issue with addiction sites is that you get a site that has 30 professionals and has a great reputation, but once you franchise the addiction space, he thinks you lose a whole bunch of cache. and you feel like you are just throughput. That might work for certain types of surgeries, but he doesn’t know if it works for addiction.

Associated with PHM-X. It came out and did phenomenally well, then they did a refinancing and people got all excited. It is an acquisition-based story. It is too early for most investors.