Peter ImhofPivot Technology Solutions Inc.PTG.TOBUY ON WEAKNESSSep 28, 2017

It is a bit small cap for what he does. A reseller. They had a big run-up and since then has treaded water. It picked up some negative price momentum. It has a high yield. It has skinny margins so there is not a lot of room for error.

(Market Call Minute.) Their distribution is doing quite well. Great opportunities to continue to grow in the US. He likes the stock. It's a great opportunity.

It is a bit small cap for him. Reselling is a difficult business and margins are thin on large revenue. Price momentum is in the top 1% of the small cap space – it has very good price momentum, 2.6 times cash flow, higher on a price earnings multiple and a 6% yield. It is not liquid enough for him.

Basically a seller of hardware equipment. A very, very low margin business, but they have a very good top line. They are going to generate $22-$23 million in cash flow, which is supportive of the dividend going forward. This has a large yield on it and he doesn’t think it gets hurt as rates go up. If they can improve margins just a little bit, they get good growth in the stock. Thinks this is undervalued.

A reseller of computer equipment. A high revenue line with very low margins. Going forward, the catalyst will be execution and improving margins over the next couple of quarters. Thinks there is some upside on this. Generates a lot of free cash flow. Dividend yield of 7.23%.

Has been a really frustrating stock, because they have a nice sustainable dividend yield of 9%-10%, but management recently attempted to do a transaction which would essentially allow them to buy out the company for next to nothing from shareholders. Feels the stock is weak right now people are concerned that management is not working in the best interests of investors. He has similar concerns. There is a dark cloud hanging over the management team. Thinks there will be some resolution on this. Just raised their dividend again and the payout ratio is low, so there is no dividend cut coming.

Had this is a Top Pick in May at $0.50. It is up a little, but through a really crappy market. Probably has been a pretty good relative outperformer. Trading at 3 or 4 times cash earnings, so it is really cheap. There are rumours that it is going to get taken out. If the valuation doesn’t get higher, it will get taken out either by management or some private equity guys. Really inexpensive and he suspects that within the next 6-12 months something will happen.

This was a Top Pick on May 6/15. They put up a great quarter recently. The stock has gone flat in the last while. Very inexpensive, but don’t make it big weighting.

It has been on quite a run. An analyst came out with a buy recommendation. They have very thin margins. Their valuation is not bad. Small streamlining in costs can make a lot of difference to their business. He would like to see a small improvement in margin. He has a starting position.

This is a value added reseller of software. What makes it interesting is that John Sculley, the former CEO of Apple, is the chairman, but not a passive one. Haven’t done a lot of marketing in Canada, but believes they are going to do a lot of marketing in June-July. Trading at 7X 2015 earnings, and maybe 4X 2016 earnings. Don’t bet the farm on this, but it is worth a few bucks. He could see it at $1.00 in a year’s time.

System integrating company. A 10% dividend shows a lot of confidence. He owns some of this stock. He was buying today even.