Imvescor Restaurant Group (IRG.TO)

(A Top Pick April 16/13. Up 38.36%.) Story has only gotten better. Earnings are going higher. Have a great retail business where they sell some of their products in grocery stores. That retail initiative is a very high margin business. Well-positioned and generating a lot of cash flow. At some point, they could initiate a dividend which would be received positively.

One of his largest positions. A well run business that it undergoing a turnaround. Trades at a discount to others. He is confident in the board to put someone in place as CEO. A re-initiation of a dividend down the road is a distinct possibility.

Smaller cap, special situation, royalty income company. St. Hubert, Pizza delight, Baton Rough. Have cleaned up their balance sheet. Used to be an income trust. Are in growth mode today. Are working with grocery stores on, for example, Baton Rough ribs. Discount to other restaurant royalties. Doesn’t pay a dividend because it got quite over-levered and have just restructured their balance sheet. Thinks a dividend or share buy-back program is on the books.

Umbrella group that owns a number of restaurant groups.

Has done a great job turning around the business. Cleaned up their balance sheet significantly over the last year. Well-capitalized. Banners include: Pizza Delight, Mike’s, Scores and Baton Rouge. Their core restaurant chains, largely Québec and Atlantic based are showing improving operating metrics and cash flow. A very under followed company so trades at a pretty big discount to a lot of the other royalty restaurant companies.