Sandvine Corp. (SVC.TO)

Believes in their revenue growth story. This deep packet inspection, in being able to charge for different areas of your mobility and data plans, will ultimately benefit them down the road. Companies like Netflix or HBO will want to offer some kind of services, where they can pay for your data usage on those plans. World class products. 10% of their sales in the last quarter were from IBM (IBM-N). At these levels, your downside risk is very limited.

He sold back in the early summer when the FCC opened comments for net neutrality rules. The opinions coming back were quite negative for SVC-T. They would address the case where carriers would want to identify certain packets and give them a higher priority, e.g. Netflix, where they would cut a deal with them.

(Top Pick Oct 1/13, Up 31.48%) They had a pre-announcement earlier this year and the market did not take kindly to it. The space has been very difficult. He bought more of it last week. Stick with it.

They’ve had an outstanding run over the last 2 years. Went from disappointing the Street for a while and it took a few quarters to get credibility back. Had 20% year-over-year revenue growth for about 6 quarters in a row. Just announced that revenues are not going to come in as high as they thought, so it looks like it is going to be roughly flat year-over-year revenue growth this quarter. Longer-term, this is undervalued versus its peers. Thinks they will make up those revenues in the coming quarters.

(Top Pick Oct 1/13, Up 56.48%) If you look at the kind of leverage this business model is capable of, the stock is not doing what it could. They are leaders in their space.

Turnaround story. The management team has learned from their mistakes and now have things right. Done well in terms of earnings over the last few quarters. Low multiple. $1 a share in cash. 12 times earnings. 50% earnings growth next year. Margins continue to increase. Multiple will continue to increase. There is a scarcity of technology companies in Canada and this one is a good take out candidate.

(Top Pick Mar 7/13, Up 103.08%) A cable company can now charge companies like NetFlix to access its subscriber base. This is where SVC comes in.

(A Top Pick March 7/13. Up 62.05%.) If you own, continue to Hold. You may not get rewarded this year, but over the next couple of years you will. He senses that there is a larger telecom and Internet spend coming. We need to upgrade our networks and make them faster. This company is right in the middle of that sweet spot.

One of his growthier names. They do deep packet inspection, which takes all the data that you send if you’re on your phone, using social media, texting, etc and pull it all apart to see what you are doing, which is very valuable for the carriers. Have started to announce some big contracts in Latin America and some big carriers in the US are adding products. A leader in their field.

A science experiment that is finally getting traction. They do deep packet inspections as to what is happening on a network to improve quality of service. Stock ranks in the top 1% of the database. Earnings on January 9 are up 28% and the next quarter is supposed to be up 34%. Free cash flow positive with a 4% free cash flow yield. PE forecast for 2014 is about 17X against a reasonable growth rate of 37%, which gives you a PE to growth of .5. Great Outlook for the coming 12 months.

(A Top Pick Jan 8/13. 108.44%.) Still very excited about this one. A great stock to hold. There are not that many growth stocks in Canada and he could see the stock continuing to work over the next year, providing a lot of upside from here.

(A Top Pick Jan 8/13. Up 72.08%.) Over this past year, the company has gone from being a third-place marketplace participant to a first-place participant. They have regained market share mindset. Feels margins are just starting to expand. If it got to $3.50 he thinks he might be selling some shares.

They spent a lot on R&D, way more than competitors as a percentage of sales, but more recently they seem to have traction and have R&D under control. One of their major customers changed suppliers but they have recovered. They are getting big traction in South America. He doesn’t buy small caps but he would have seriously looked at this one.

(Market Call Minute.) Have just produced some decent earnings. Customers are using their products to make more money for the phone companies themselves in addition to their core business of deep packet inspection.

They sell into telecom equipment, either wireless, cable, etc., and inspect the zeros and ones that go through to understand what is going through the network. Thinks it is starting a new leg of growth here. Will be reporting on Thursday. This space grows at around 20% and this company is the market share leader and they believe they can grow faster than the space. Not expensive given their revenue growth.