TheScore Inc. (SCR.TO)

You don’t want to have it for a short time. He thinks they will start to monetize their customers over the next 3 to 4 years.

(A Top Pick June 20/14. Up 94.29%.) Still likes this. Growth has been better than he had expected. Some of the things they are doing, like getting into daily fantasy sports and Esports, is going to continue to grow sales. They have quite a war chest of cash now, and wouldn’t be surprised to see them make an acquisition. At some point he could see them launching in Europe, which would be pretty interesting. They have a very valuable user base.

If you are prepared to tuck it away over the next year or 2, he thinks it is going to continue higher. Have obviously done a great job in sports apps, but now are getting into the high video gaming business, which is a huge market. Also, the fantasy sports market is really taking off in the US and globally. This always seems to trade with fairly significant valuations, but management has always executed very well. Management has recently been buying stock.

The key here is using mobile apps in order to get at sports scores. Recently acquired a fantasy game company that allows you to create NHL and NFL games. Separate freestanding companies who have just the fantasy game portion, are trading at extremely high valuations. Thinks there is an opportunity for this company to take their 10 million subscribers, and have them access and use the fantasy part, which will then provide more opportunities for advertising and revenue growth. Management has done a good job historically. Think you will be happy with what will come.

This is particularly good for its dynamic situation in sports Internet video presentations.

(Market Call Minute.) He has the app on his phone and loves the product. However, the financial model and the lack of profitability is problematic.

Chart shows a fair amount of volatility, but it is OK volatility. The basics are there. You are getting your stepladder higher highs and higher lows. Feels the last run it had over the past 6 weeks has been a little bit steeper than usual, so it might be due for a pullback. Your lows and highs are higher and the overall trend is in great shape. If you have a perspective that is a little bit longer than a week, you are probably going to do okay on this.

(Top Pick Apr 21/14, Up 126.09%) Smart people with a track record that get their family and friends to write big cheques so it is easy to have confidence in them. He knows it will multiply in price and then they will sell it because that is what they do. They will add more users and find a way to monetize them.

Continues to execute really well. Have ramped their users from a couple of million a year or so ago, to over 10 million now. Have gone into some new areas, so are moving into fantasy gaming. They are also moving into the e-video gaming stuff, so have a number of different areas they are working on. The one knock is that the valuation is starting to get really expensive and they need to grow into that. Now that they have 10 million users, they are hopefully going to start to really see advertising revenue ramp up. By late 2016-early 2017, they’ll actually be profitable.

They had $16 Million on the balance sheet but just raised equity and he thinks this is for an acquisition. In the mean time you have massive growth in the app. It is getting to that kind of scale where you are going to see big increases in their advertizing revenue. Ultimately, someone like FB-Q would take them out.

He likes it. They are very dominant in any sports related activities. They have to keep acquiring bits of software and maybe somebody someday buys them out.

10 million subscribers. The true users may be close to half of that. Can they turn that client base into free cash flow? They will benefit from the unbundling of channels as enforced by the CRTC.

They are getting tons of traction. Fantasy Sports (network?) is a huge business in the US, and this company is supplying all the data for that market. Typically, after a financing has been done, there is an overhang. Once the digestion clears up, the stock will probably go higher. This is trading at a huge multiple, but you are looking at the number of users they continue to add to their database and their future. As they get a larger and larger registered user base, they are able to charge advertisers more.

He likes the product, but every time he hears something wonderful about this company, he looks at the financials and says No. It doesn’t work for him. Certain concept stocks can go a certain way, just because of the coolness and hipness of the product. This is high growth/high risk.

This is a very snappy company and is at the top of its game. Becoming quite a dominant company in sports. This can continue to grow.