Valeant Pharmaceuticals (VRX.TO)

Loves this company. Sees a continuation of the trend. If anything were to happen to the CEO, he would be out of the stock. It is very rare that you get a guy like this. His model price is $236, a 12% downside. Any sort of pullback you can get, back to the $230 level, he would be a buyer.

(A Top Pick June 24/14. Up 101.07%. My records do not show Jason being on BNN on that day, so I am using the figures that BNN is showing.) Great company and he has never sold a share. Thinks this is one of those companies that will continue to push on.

Has been a great story. Their story is to do acquisitions to find drugs and products that mesh with what they already have. Valuation has crept up and is almost 20X earnings now. He has reduced his position, and one of his bigger names now is Actavis (ACT-N) which is trading at only 16X earnings, and is growing faster.

Acquired Biovale. 3.4% free cash flow this year and 10% return on assets. In the midst of acquiring a company that will be accretive to earnings so they grow 42% this year and 58% next year. 10.7 times PE. If this performs as expected it will likely be the largest cap company in the index, surpassing Royal Bank.

An enormous success story since they merged. A staggering, stunning run. Where it is going to end, who knows. It is above its fair market value. They have cheap acquisition currency so they could keep things going.

Has a very interesting strategy which the market seems to like and which makes money for its investors. Made roughly about 2 dozen acquisitions in the last 2 years. Likes the exposure they get through some of their companies in Asia. We are not seeing the same impact in health care segment in Asia as we are seeing in the commodity cycle, and this company has really capitalized on that. He has a problem with companies that are not growing organically, but at the same time their earnings growth has been working in their favour.

A rollup story, where they do acquisitions. Last year it was pursuing Allergan (AGN-N) but Allergan won out. A great company. While all this was going on, it was trading down around $125-$140 range, significantly less expensive than what it is today. He has been trimming his position. Trading at about 20.25X earnings.

This is large cap, liquid and growing. They have organic growth plus a really strong acquisition ethos, so this is a place you want to be. He is very comfortable with this being 25% higher in a years time. A great company and a safe grower in what could be a tumultuous period in the next year or 2.

Has done extremely well. Being one of the very few healthcare names, a lot of money is being driven into it. You are getting pretty decent value given the fact that the PE is about 16X on a forward basis, and you are getting about 15% long-term growth.

He has had some problems with the Alergan situation. It was not handled properly. Loves the company, holds it and has no intentions of selling it. This is a company that buys companies that don’t need FDA approval. He would hold on to it.

A really, really interesting company. It is an acquirer, and in that acquiring phase, the stock has done very well. However, it is now trading up at 8X BV, which in his books, is not exactly cheap. The stock has kind of run out of FMV upside potential. It needs to make another acquisition or 2 that are accretive to earnings. The stock is expensive and it is risky right now.

(A Top Pick Dec 24/13. Up 36.75%.) Has had quite a year in ups and downs, but if you look at the ROE, it has been terrific. Their most recent quarter shows a very positive cash flow. It looks great.

ROE is great at over 30%. A lot of the businesses they acquired are actually doing better than people thought. Sold his holdings because the inversion thing was making him nervous, but that is starting to settle down. He thinks this is going to be less oriented towards inversions going forward, and just acquiring good accretive businesses.

This is a company that grows through acquisitions. They buy the R&D and then, when they buy the company, they cut costs and go from there. When the company announces an acquisition, the stock usually jumps. If you own, she would suggest you take your money and go elsewhere. She prefers a clearer picture of where the growth is coming from.

(A Top Pick Oct 9/13. Up 31.02%.) These 3 picks were large cap liquid stocks that hopefully would not give you a surprise. From a technical perspective, this was pulling back, but that seems to be behind them and they still have the benefit of the lower tax rate advantage to acquire US companies particularly. Ranks 39 out of 730 stocks in his Quant model. Earnings are expected to grow 20% in 2015. PE of 12.8 times. Looks attractive for the coming 12 months.