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Norsat International (NII.TO)

BUY
Continues to have it on the buy list. Change company when they bought Sinclair. New board member could be good for the board. When it moves it could move quickly and he expects it to happen quickly.
DON'T BUY
When they did their takeover, it doubled the size of the company. After something like that happens, there is a certain amount of rationalization that takes place. In this case it is the amortization of some of the Sinclair properties. When that happens, it means they are going to have bad, negative income going forward.
BUY
Has had this for a few years. Acquired St. Clair. There will be write-offs (non-cash) and there could be some red ink. He likes the management. It’s on his buy list and this is an excellent entry point but you have to be patient.
PAST TOP PICK
(A Top Pick April 5/10. Up 1.43%.) Satellite company. Bought this in 2007 and had hoped for a better return. Positive bottom line and revenues have grown. Recently acquired another company, which will double their size and it wouldn’t surprise him if they have some write-downs in the next3 -6 months. He still sees upside for it.
PAST TOP PICK
(A Top Pick April 5/10. No change.) Satellite manufacturer. Just acquired Sinclair Technologies, which has almost doubled the size. Hopefully they will grow because of economies of scale. Target price of $1.84.
TOP PICK
(Top Pick Apr 5/10, Up 15.71%) Satellites. Management seems to think acquisition will be immediately accretive. Likes the management. Revenues were increasing, cutting the debt. There is not a lot of conflict in products. It will come on a lot of other analyst’s radar screens.
BUY
Reporting profits, managing balance sheet well. Has not been recognized. At some point he thinks it will be recognized. Often stocks don’t do anything for a number of years and then they just take off.
PAST TOP PICK
(Top Pick Aug 7/09, Down 32%) Excellent revenues, they are making money. It seems hardly anyone cares about this stock. Likes management, cash has increased. It looks good. Strong balance sheet.
PAST TOP PICK
(Top Pick Aug 7/09, Down 31%) Mystery to him. Cash flow is negative. Limited cash in the bank. They are moving in the right direction. They have been profitable for quite a while.
TOP PICK
They have been doing everything right. Record income. Revenues went up during recession. They are buying back shares. Moved into new market places. They only thing is that market has not responded. Good balance sheet. Market is not responding possibly due to checkered past. At some point the market will recognize them.
PAST TOP PICK
(Top Pick Apr 1/09, Down 17%) He had wanted a stock that would ‘stay in the game’. It has no debt with growing revenues and excellent management. They grew revenues very nicely. Has no idea why the stock not higher. At some point the market will wake up to this company. Be patient – 3 or 4 years to get to his target price.
TOP PICK
Keeps going from improvement to improvement. Revenues have gone up year over year and making money quarter over quarter, although not a lot. Making inroads into new markets such as Italy. No debt. Started a shareholder buy-back program.
TOP PICK
(A Top Pick Oct 9/08. Down 18.5%.) Doing very well. 2008 results were excellent. Normally the results would be looked on very favourably but with current negative sentiment it is difficult getting traction. Buy a little at a time, not a full position.
TOP PICK
Excellent management, getting new contracts, will hold up well during a recession.
HOLD
Very content to continue holding this one. The satellite sector has a very good future. Good management.
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