James TelfserDH CorporationDH.TOPAST TOP PICKApr 12, 2013

(A Top Pick Feb 17/16. Down 20%.) This got privatized.

(Top Pick Feb 17/16, Down 19.76%) It fell apart and was acquired. They fell apart integrating their US acquisitions. They are no longer a public corp.

There was a big drop off that took place in late 2016, and then it partially recovered. He understands that they are in the middle of talks for a buyout, with the price being close to where it is right now. There is not a lot of potential.

Being acquired at $25.30 a share. It doesn’t look like there is going to be anybody else coming in and paying a higher price. If you have another idea, then you could sell it right now and move on.

It was a short in the past. You are looking at a merger arbitrage trade. It is the time value now.

(Top Pick Feb 17/16, Down 17%) They are effectively being taken out. He liked what they were acquiring. The problem was their execution failed and they bought acquisitions through debt. It was a bit of a miss.

Before the takeover offer, the stock was not doing very well. The company put themselves up for sale and only one bidder came along. There is still time because the deal has not been finalized.

Being acquired by Vista Equity at $25.50 a share. They had some serious issues the last quarter where they missed badly. However, overall, it was a pretty good company. He would be inclined to take the offer and move on.

He bought more when it fell because it was massively discounted. Also, management gave very poor guidance about what was happening to a lot of their businesses. Feels their core businesses really has good opportunities on the FinTech side, in the US specifically, and the stock can slowly go up. Pays a decent yield.

This has been a disappointment. In terms of their new entry into FinTech, it has had some disappointing results. At the current price level, he feels it is reasonably valued. This is more of a “show me” story at this point.

(Market Call Minute) They are having troubles in the US.

He bought more when it fell after earnings came out last quarter. Hopefully this quarter they get some of the business from the RFPs they put out previously. Over the next couple of quarters you will see some changes in the company. The dividend is reasonable and he was glad they cut it. There is opportunity for the stock to go up from here.

This does financial back offices for many, many companies globally. sold his holdings when they first had accounting issues. Once you lose control of your Book, you’ve lost control of everything.

In December, he upgraded this to a sector outperform again. Private equity was approaching them to possibly pick apart part of the business. A very cheap FinTech play. He can understand why the stock cratered. Their US lending business will pick up, and he doesn’t think the Canadian business is declining as fast as we saw last quarter.

He started re-buying it a month ago. He thinks it will get taken over. They have received unsolicited offers after the stock sold off. He suspects it is private equity firms.