DH Corporation (DH.TO)

This has had a big move and there is still more to come. Q3 was a little weak, giving you a little bit of an opportunity to Buy. Their import and US unit held in very well. He sees earnings of 33% from 2012 to 2014, with growth coming from recovering US banks that need to upgrade their core systems.

(A Top Pick Nov 22/12. Up 37.38%.) Cheques are still a pretty chunky part of their business, but they are slowly moving into other areas. They are really a technology company for the financial services. Thinks their organic growth is going to be in the US, where there are lots of banks. He is looking for 12%-15% organic growth over the next little while.

A company in transformation that has made a very serious acquisition in the US that will take it into software management services inside banking operations.

Took profits because it is rich on the valuation. No issues with the company.

Were in a business that was old and now are in a business that is growing. There is a lot of growth left in it. You have to pay up for it and it has a nice dividend of 4.9% quarterly.

A wonderful, interesting company. He owns the convertible debentures. Annuity-style revenues. Not dirt cheap but they have a nice yield. He likes the bond offering but does not recommend the common stock.

The old-stodgy cheque making business is extremely profitable. Management has done a great job of diversifying away from cheques. Have gone into the US after financial technology companies. Their last acquisition really compliments their other sides of their businesses. Yield of 4.92%.

(A Top Pick October 30/12. Up 33.95%.) Now a company in technology for financial services and doing less and less in issuing cheques. Stock has pulled back a little bit because it has run up a fair bit. Still likes it. Great dividend but doesn’t expect there will be increases as they want to pay down their debt.

Great company. Recent financial acquisition is 9% accretive to 2013 earnings per share. Their old business now drops to 30%. Etimates they can grow their EPS 33% over the next couple years. Great combination of growth and dividends. Trades at a much higher multiple than it did before but he thinks it’s worth it. If you own, he wouldn’t sell it, but he might sell some near-term Calls on it which generates more cash flow. Dividend of around 4.5%.

Could end up being a game changer. Increases their exposure to the US tech sector. Lending solution. Likes it. Not the cheapest entry point.

This is turning into a financial services technology company. Acquired a US company. Getting very good margins. Had to grow way from their cheque business. There will probably be dividend growth of 5%-10% a year going forward. They are only paying out about 60% of their earnings currently. About a 5% yield.

Very well run company. Has diversified a lot over the years through acquisitions. Likes it long-term, but wouldn’t be buying it here. Wait for a pullback.

Made a super class investment in the US company that gives them a huge entrée into core management systems in banks across the US. Still maintaining its 5% dividend.

Continues to like it. Transformed from sleepy cheque printing company to a transaction company. Completed an acquisition of a software company. If it gets to $27 quickly, take a little off the table. Whenever a position exceeds 5% of portfolio, review whether to take a little off the table.

(A Top Pick September 12/12. Up 32.51%.) Did a very large acquisition of a company that does financial solutions. This was a great acquisition as it changes their business and gives them 6200 new clients which are well dispersed geographically. 5.1% yield and probably won’t have dividend increases until they bring down their debt level.