Bruce Campbell (2) Pacific Insight Electronics PIH-T COMMENT Oct 26, 2016

Based in British Columbia. They have a high ROE, although they haven’t had a history of it for the length of time that he would like to see. This makes the LED lights that you see in cars. Some of their customers include Ford (F-N), Caterpillar (CAT-N) and Tesla (TSLA-Q). The last earnings report was weak because they had some upfront costs launching a new product for a customer, which reduced margins. Thinks they can get back to their highs of $15, and go beyond that if they can continue to grow their earnings with a high ROE.

This does LED lighting for the auto manufacturing industry. Doesn’t think there is any coverage by the street yet. This has had a phenomenal track record of growing their earnings, and over the past 5 years it has been over 35%, and the stock is trading at less than 10X earnings. There are lots of catalysts for them.

This provides interior lighting solutions for vehicles. People want these things in their vehicles, so the demand for this type of product has really increased nicely over the last several years. They have seen a very strong pipeline for their product. A very profitable company. Just started working with Tesla a couple of quarters ago and are now working on their model 3. They are best in class in terms of the product they provide. A prime take-out candidate, as they keep continuing delivering and given the levels they are trading at.

In the automotive supply business, and focused on LED lighting. A lot of their product goes into the Ford F150 and other Ford products. Announced a couple of quarters ago that they were working with Tesla. Manufacturers are looking for ways to make vehicles lighter, and this is one of those ways. There is massive competition, and this is such a small company that its flies under the radar. It allows them to be really adaptive and to change. He continues to like this. Looking at their numbers, they always grow year-over-year, but not necessarily quarter over quarter. The last 2 quarters have been a little slower than what the market expected, so the stock sold off. This is a great opportunity.

(Top Pick Jan 24/17, Down 17%) LED blue lights around cars. A mid February earnings release was not that great. Canada/US trade arrangements are cited as a risk in their report.

(Top Pick Jun 30/16, Down 20%) They have great earnings growth, but it is rather lumpy. As auto dealers need supplies of a certain part they get big orders, and then seems to have a quarter or two where orders drop. They added Tesla to their customer base recently.

(A Top Pick July 27/16. Down 20.13%.) They continue to execute on an annual basis, but tend to have fairly lumpy quarters. He really likes the business. They continue to get into more vehicles. They are into Ford and Tesla right now. When Tesla rolls out the new models, they’ll probably get more business. Trading at a fairly reasonable valuation.

(Top Pick Feb 24/17, Up 9.46%) A small cap company that has not yet been discovered. There has been concern about the Trump impact, but it is so profitable and has such a high return on capital. It will become more and more noticed by investors as they work on lighting for Tesla cars.

(A Top Pick Jan 24/17. Up 90%.) This was a BC based company that was involved in LED technologies, specifically as it applies to cars. It was acquired at a very, very healthy premium.

(A Top Pick Jan 25/17. Up 82%.) This company was taken out for cash.