Great Canadian Gaming Corp (GC.TO)

(A Top Pick July 7/15. Down 29.38%.) Has been in and out of this since he picked it. 2 quarters ago they reported a miss and he sold at around $19. Recently bought a small position based on an earnings report that looks better. A very friendly shareholder management team.

(A Top Pick Oct 27/14. Down 6.31%.) Did a big buyback a couple of years ago and they continue to buy back stock. It is almost like an ongoing privatization. In a gambling situation, sometimes you get a good quarter and sometimes you get a bad quarter. A very solid company. Economically sensitive, because they do have hotel exposure. Largely BC based and have expanded into Ontario, so are starting to expand across the country. Still likes it.

(A Top Pick July 7/15. Down 23.24%.) Sold his holdings when price momentum turned negative, but thinks it is a well-run company. From a valuation perspective, longer-term the company is still in the top 20% for him. Good ROE’s and trades at about a 9% free cash flow yield. Have been aggressive in buying back their stock.

They really like Great Canadian Gaming. It is a stock that is just under the radar. Great long term story.

He is looking for stable stocks that can weather the storm. This scores in the top 20% for him on both value and price momentum. High free cash flow yield at around 9%. He likes that this is a pretty stable cash flow story. It gives management a lot of options in terms of what they can do to take value to shareholders. Have been very active on buybacks. There is always a possibility that they will take the company in on a management buyout.

Does not get a lot of attention. 16-17 casinos in Western Canada. Earnings up more than 50% last quarter. Great moves on the capital structure side. They did a lot of share buybacks because they have too much cash flow. In BC it is a regulated industry.