Michael Smedley Input Capital Corp INP-X PAST TOP PICK Apr 28, 2016

They buy streams of canola production from farms. They have 112 farmers. They could triple or quadruple quite easily. They pulled back in the last few quarters. He has about 3% of the company. It is still early days for them. 2.02% dividend. (Analysts’ Target: $2.66)

A unique business model, and it has only been around for a few years. They give money to farmers in exchange for a revenue stream on canola production. What drives the stock higher is their deployment, i.e., how many farmers can they sign deals with over the next few years. This is usually seasonally. Expects there will be news over the next few months, in terms of how much capital they are going to be able to deploy this year. These are early days, and they are just scratching the surface. There are a lot of canola farmers in Western Canada.

He likes the people behind this. It is very innovative and novel. It is choppy, because it is agriculture and it is new. The business model could work, but they have to iron out some of their kinks.

Management are really sharp guys. Canola prices have remained quite stable for some time. This is early days for this company. They are barely scratching the surface with all the farmers out West. This is the time to buy if you want an agricultural stock.

Finances input costs for farmers. In return, they don’t get paid money, but get paid a piece of the crop. The company has had trouble making this work as there is a lot of volatility. He likes the people who run this. You should wait until they work this out and iron out the kinks in the model.

(A Top Pick Dec 12/16, Down 17%) They are growing very quickly. They can command a higher price for canola. They are now at 2% of the market so there is tremendous growth potential. They just instituted a dividend last year and are now buying back shares on the market. There will be growth there for the foreseeable future.

(A Top Pick Dec 12/16, Down 24.70%) Canola is the fastest growing crop and the most profitable. This is still early days for them. They are sitting on a lot of cash. You can get in on the cheap. He would buy it and put it away.

He says they do not own it as the company is attempting to build a brand new market for canola streaming. They have had some lumpy earnings quarters. He continues to watch it, however.

He owned it even when it was private. He has cooled on it a bit since they launched the mortgaged streaming product. The canola may not be catching on as fast as he originally thought. He sold a while ago.