Jason Donville Solium Capital Inc SUM-T HOLD Mar 18, 2014

Sold most of his holdings after their big run. They are trying to move into the US. On a valuation basis, he thinks it is pretty extended here. He also sees the growth slowing. A highly competitive business in the US.

Reported good earnings yesterday. Has a very interesting service, equity planning for major corporations.

Software as a service with a high recurring revenue model. Just reported their earnings and people were disappointed. They were down 29% year-over-year. Expanding into other markets. Earnings estimates have been revised downwards by about 4% in the last 90 days. PE is 28X for 2015 as opposed to 24X. Thinks the stock will mark time as people wait for coming quarters to see if there is any improvement.

He has a small Short position. It is really more of a quantitatively driven Short. Earnings estimates, on a go-forward basis, have shown negative momentum. Had a good run in Canada on benefit processing and things like that, and are trying to do the same in the US, which is a much more competitive marketplace. Thinks there is more risk to the name then upside.

Has owned this 3 times off and on over the last 3 years. Just reported and the ROE is just a little bit lower than where his threshold is. He is looking for 20% growth and this is growing at 17%, which is still not bad for a lot of people.

Basically provide a lot of employee benefits, particularly with regards to stock options, etc. They advised they were expanding into Australia and the UK and that expenses would go up. Earnings are expected to grow from $.21 to $.28 however you already have a 26X PE. If they are successful, they will have a 12% ROE. 14% growth against a pretty high PE for next year is why the stock is marking time. Expects there will be a continuation of the sideways move for another 6-12 months.

A software platform with large cap clients. They manage employee stock purchase, stock option plans and share buybacks for publicly traded companies. Sales are growing rapidly. They have a high level of recurring revenue. The upside is huge here. (Analysts’ target: $12.91).

(A Top Pick Jun 14/18, Up 59%) It is another example of an undervalued tech company in Canada. It was taken out by MS-N just over a month ago.