Benj GallanderHartco IncHCI.TOPAST TOP PICKOct 02, 2012
(A Top Pick Oct 4/11. Down 15.98%.) Has done poorly over the past year. Took over a company that didn’t work out so they have been writing it off. Revenues have also been decreasing from $500 million-$400 million. President feels it will be another quarter or 2 before things turn around, so patience is necessary. It is still on his Buy list but he is less patient now than he was before.
Have a number of stores and are a leader in their field. Clean balance sheet, money in the bank and no debt. CEO said that the turnaround was going to take longer than expected and their revenues kept on declining. Sold his holdings a number of months ago at a slight loss.
IT solutions out of Quebec along with retail outlets. Had about $150 million in revenues this past quarter. Clean balance sheet. Looking for a double. Not a lot of liquidity, so a tough one to trade.
Expected them to turn around more quickly than they had. ERP system is taking too long to bring on line. They are a tech company should have had a better idea how they work. Hoping they will pay a dividend again in time.
(Top Pick Feb 9/10, up 8.33%) Marginal profit last quarter because of IT upgrades/ERP system installation. Typically ERP installation is a red flag for a stock until it is completed. Leader in the field, revenues up year over year. When they re-establish the dividend that should really help the stock price.
Still likes it but would not buy it. Likes the management. No debt. Doing a lot of interesting things to turn the company around. Sweet one in his portfolio. Would not surprise him to see a dividend in the next year or so.
IT company, mostly based in Quebec, deals with public and government. No Debt. Not quite half of trading price in cash. Wouldn’t surprise him if there was a take over. They make money.
Were paying $0.05 a month distribution, became a corporation and eliminated distributions. Price went from $3.50 to $1 and change. Now sitting at about $2. Chairman owns about 60% and has recently been buying. Expecting tremendous upside. Because they are not paying distributions they could end up earning $.40-$.50 a share in the next few years. Wouldn't surprise him if it went private before then.
Talking about changing to a corporate structure but dividend future is not clear. Sales have been negatively impacted. Fairly strong company. Clarity on the dividend would help.
Then 3.21, still holds it. Still likes the company.
He recommended it because it was badly hit because of their distribution.
They've sold off part of the company which was a cash drain.
Thinks it will continue to go.
(A Top Pick Oct 6/06. Up 4.7%.) With its 6% distribution, that works out to about 20% a year. Company has been undergoing quite a bit of change. They have a Compusmart division (retail stores) which is not been doing well. They are going to sell some, consolidate some and close some stores.
(A Top Pick Oct 4/11. Down 15.98%.) Has done poorly over the past year. Took over a company that didn’t work out so they have been writing it off. Revenues have also been decreasing from $500 million-$400 million. President feels it will be another quarter or 2 before things turn around, so patience is necessary. It is still on his Buy list but he is less patient now than he was before.