Jean-Francois Tardif Madacy Entertainment Income Fund MEG.UN-T TOP PICK Aug 29, 2005

Packager and distributor of low priced CD's. They own content. You'll see them on the discount rack at stores. Just announced their result and where in line with expectations.

Just announced results and some people were disappointed because they got a very large contract but had to buy back the previous supplier which resulted in a $500,000 loss. It's still growing sales. Getting new contracts. Hurt on the short term, but the yield is 16%. Just bought more because it's way to cheap.

Nothing wrong with this company. Investors sell when there is any drop. AT the point where a good financial engineer could take it out. A lot of small caps like this are best bought through a fund so there is less security risks.

Competes in the budget CD and DVD business. Customers include Wal-Mart, Best Buy, mass merchants and specialty shops. One of their clients just filed for bankruptcy which represented about 5% of their total revenues. It is now pricing in most of the risk.