DHX Media (DHX.B.TO)

Sold his holdings at about $1 ago because of valuation, which is starting to push up into the upper extremes. He would like to see numbers come back in from a valuation point of view. This business is very successful and they continue to just roll up these film and TV show libraries. The next catalyst will probably be that they will just continue to put together those pieces and create more film and TV show libraries put together. Expects they will sell out eventually, but there are probably a lot of small acquisitions in between.

This is too expensive for him now. They have had a lot of changes and have taken over another company, perhaps two.

Knows it well. Well managed company and got in at a great time to start consolidating children’s content. Family channel with recurring subscribers. Did a phenomenal job of monetizing newer and older content. It’s difficult to value. They had a big run so be careful. He has taken profits. He may get back in on weakness. It is not impossible that Netflix will acquire them. At some point this company will be attractive.

(Market Call Minute) Brilliantly run.

Growth has been phenomenal. It fits into the theme that she likes, i.e., growth by acquisition. Because we are in a slow growth environment, she loves companies that are making acquisitions. This has been a phenomenal example. She feels the company will sell themselves at the peak of the cycle.

Likes the business model. They are more about the online space now. Bringing their library to YouTube and getting royalties from advertizing. They know the space incredibly well. One of the better growing media companies in Canada. At $8.50 or $9 he would consider taking profits and buying back on a dip.

Had a great run. Trimmed his position at around $7. He was waiting for the catalyst event of them closing the Family Channel, which they did. Likes it long term and if it came off further, he would likely Buy more of it back. Loves where they are positioned. There are only a handful of studios globally that produce content for the children’s segment. Turning into a global business and they are either going to be acquired or are going to be one of the consolidators.

This is a superb mini-Disney. Probably required in a takeout manoeuvre by someone some day. It is absolutely at the top of the small company world in the creative children’s programming. Globally situated with its products.

They have been in the right place at the right time. They acquired the family channel. They have to renew with Disney over the next few years. They could get bought out over time.

Management team has done a great job. These content libraries are just becoming more and more valuable, especially as we migrate from just watching TVs over to iPads, computers and other devices. They are picking up children’s programs, which really don’t go out of favour. Thinks this can probably go higher.

A great example of a management team that have spun out and done it all before. They are now picking out libraries like Teletubbies and forming timeless content for children. This is great, because there isn’t a language issue as it is very easy to dub these into other languages. The value of their library is probably higher than what people are giving them credit for. This is a 5 year timeframe, where they will build up their library and ultimately decide to sell it to big media enterprises. Good company and very well-managed.

A very rare mid-cap Canadian media company that owns a portfolio of very, very strong children/youth oriented titles. Thinks there are still lots of opportunities for them to buy up things people don’t want, rebrand the titles, and continue to capitalize on the titles they own. Have made a bunch of acquisitions. There is potential for M&A activity.

Still loves this. Likes the Astro Media deal, and thinks it is going to close imminently. This will basically double the cash flow in the company. He thinks the next leg up will be when they re-sign Disney content into the Astro channels.

(A Top Pick Dec 10/13. Up 30.91%.) This is media and content, so you can compare it to Disney (DIS-N) and CBS (CBS-N) and look at what they have done. In the consumer space but they sell media, and it is children’s programming. Bringing back all the oldies and the goodies. Acquired the Canadian rights to the Disney channel. A great growth story. Still really likes it.

A finely run company that is one of the dominant independents in its space of dealing with children’s productions. Has been quiet lately in terms of news so you have to toss the coin, and decide if it is going to be up. It will do something at some point. Someday, somebody will buy it up.