Recipe Unlimited Corporation (RECP.TO)

Chart shows a big rounding base from last November. The first thing that will be seen is some resistance coming in at $35. Some of the indicators on a short term basis are extremely high. There is a $55 technical target.

Made a big deal when they took out St. Hubert in Québec. They are going to be able to leverage that to improve costs and margins. Thinks they are going to do more deals. He doesn’t own this because he is a little more focused on yields.

This holds these famous brands of Swiss Chalet, Harvey’s, etc. and you have the Fairfax and the Phelan family backing. Fabulous management. Priced at only 11 or 12 times earnings and it could be much more. It will be making interesting acquisitions.

He thinks the stock is still a little expensive. The new issue did very well. Came out at about $23 2-3 weeks ago. He thinks part of that was just a scarcity factor of non-resource Canadian companies.

He would wait on the stock for an entry point because it was hyped up and over subscribed at the IPO. Be patient and buy it when it gets dipped. A solid business model. They have been doing a good job over the last 10 years. He has YUM-N.

The valuation is extremely expensive. He feels this whole sector is very saturated, competitive and expensive.