DH Corporation (DH.TO)

(A Top Pick May 28/15. Down 14.42%.) This is now a financial technology company. They made a few acquisitions in the US that has grown their US business. Trading well below its peers in the US. Has a nice dividend, but that is not going to grow over the next little while.

The last earnings report was disappointing. He prefers Fidelity National (FNF-N) and Fiserv (FISV-Q), which have a bigger market share and are dealing with much larger financial institutions. This company has done a good job of diversifying away from cheques.

They missed the other day. It shook investor confidence. It is a good long term grower, however. The next couple of quarters could be tough.

Had a surprisingly poor quarter. It has been a pretty solid and steady company. A lot of their results this week related to one of their more recent US acquisitions. He stills like to give them the benefit of the doubt. One bad quarter doesn’t make a bad stock or a bad company. Wouldn’t hurt to average down on this.

It missed its quarterly results. He would stay with it until he tells you to get out. He will be watching it.

Got hammered because they missed on earnings, a pretty big miss of 20%. Good long-term company and well-managed, but the miss kind of resets the thoughts on what the expectations for earnings are going to be for the next year. This is probably a permanent drop, and from here it will probably rebound in a quarter or 2. It would have to go down another $2 to be in a Buy range.

A re-popularized Fin Tech name (Financial Technology name), and has transformed itself into a pretty good digital company. Got clobbered today, so there was obviously a miss of some sort. In Canada it is pretty hard to find names that have a really nice yield.

Cheque printing and a lot of back end office stuff for institutions. Made a large acquisition about a year ago in the Fin tech area, and increased their exposure in the US. She is looking at this as it has pulled back and is a little different than your normal financial services player.

(A Top Pick April 21/15. Down 2.18%.) He likes financial technology a lot. He no longer owns this, but did very well with it.

Had a great quarter, and he bought stock after reading their report. The report alleviated a lot of fears that the company was not going to get the kind of growth that management had said. Probably has a little more upside here. A really solid business to own. Nice dividend which is probably safe.

One of the great examples of a company that took a slowly dying business and used their cash flow to invest in other things in financial services. Did a lot of M&A to build up their Fintec side. Got hit about 6 months ago, simply because people were questioning one of their acquisitions, and how they recognized the revenues, backlogs, etc. Have been really good at coming up with more and more disclosures. He sold because he didn’t want to be in anything with uncertainties.

It is morphing into a tech play. They are doing okay in cheques although the revenue figure is more like rounding error. They are well run. They are a good company and he would look at it around this price. He thinks it is around some announcement. The pressure will come off after that.

A lot of this is financial services software. Very well-managed. Nice dividend. Because they pay out quite a bit, it’s not what he would consider as a high growth stock. This is a good stock, where you want some capital appreciation and some income. Doesn’t quite have the ROE he is looking for.

Transformed themselves from a cheque issuer, to a technology company, which was a transformation that really worked. Did a couple of big acquisitions which they have digested well. Canada has 6 banks that largely do their own IT, and the US has 9000 banks which contract out a lot of their IT, giving the company a lot of scope for future business. They got knocked down heavily in the wake of Valeant (VRX-T). Came out with a really good earnings report about 10 days ago.

There was a Short report, and a lot of those are not necessarily correct. It said they were going to have a very hard time growing the company they had acquired, but the growth was pretty good. None of the things the Short report said came to pass. Everybody still likes the stock. Inexpensive if you look it vis-a-vis the US equivalent. The average analyst has it up $10 from here, so it has a lot of running room. They could still make further acquisitions.