Paul Gardner, CFA Sirius XM Canada Holdings Inc XSR-T PAST TOP PICK Feb 17, 2016

(Top Pick Jan 20/15, Down 30.07%) It has had trouble with revenue per subscriber. It trades incredibly cheap compared to the US equivalent. There is a massive disconnect. They are both running at the same margin levels. The balance sheet and the dividend are fine.

The stock is down with this bear market. He doesn’t expect anything dramatic to happen by way of growth. This is going to continue to be held by some key investors, and will continue to pay a good dividend. It also pays special dividends. This is kind of a sensible stock without fabulous fire in it.

Have been approached on a preliminary basis about a transaction to take them private, but thinks the problem is that the price range is lower than what people were expecting. It scores well on valuations, so the buyer at this price is potentially getting a good deal. Trading around 7X Price to Free Cash Flow. There might not be a lot more upside from here.

(Market Call Minute.) Good dividend yield. They may be getting a bid from their US parent. The suspected bid price is probably too low, but he would be turning into the strength (?).

(Top Pick Apr. 13/15, Down 17.32%) They have been approached about a corporate transaction. He thinks there is a reasonable chance a transaction will be announced soon.

(A Top Pick July 15/15. Down 11.05%.) One of the most egregious buyouts of all time, where the US parent is taking advantage of Canadian minority shareholders.

The problem right now is that this is going to be taken out by its US parent. Growth is slowing down. It just hasn’t generated the types of return that they should. He would be inclined to take your loss and move on.

Currently in the midst of a takeover attempt by the US parent company. They bid $4.50 a share, but because there is a cash share split, it is sort of in the implied price of $4.80-$4.85 range. He doesn’t think this is acceptable, and feels it is worth far more. The US parent had been using coercive tactics to drive down the price, and are now trying to make an opportunistic bid at a very low price. He intends to vote against this transaction in the upcoming vote.

Sell? When something has moved down and an offer comes to take it out, the offer is always below where you bought it. The terms of this are pretty luridly textbook style of a powerful inner circle who has devised some methodology that serves them, and the little guy is going to get trodden on. He is hoping that more money will be able to be cranked out of the offer.