Carmanah Technologies (CMH-T)

(A Top Pick July 3/15. Down 43.04%.) Sold his holdings at around $5.50, and lost money. Their business continues to grow, and this is one that he continues to watch. There is lots of promise here.

(Top Pick Jul 3/15, Down 44.89%) It is the one that hurt him. It has deteriorated since he recommended it. There is nothing structurally wrong with it and they have continued to execute, but he paid too much for it. He got out.

This has solar technology and is involved in a number of different areas. Over the next few years he thinks it is going to be a significant growth story. Management came in 2013 and immediately improved the bottom line and started to show profitability. Made some acquisitions and said there was going to be continued acquisitions. There is also organic growth. Not super cheap or super liquid, so it tends to get pushed around a little. Probably a really attractive entry point. Management owns about 40% of the company.

Carmanah Technologies has a rising 40 week moving average. Even though the price has gone below the short term moving average, there is still an uptrend line that is still being alive. Downsize risk of around $5.10- 5.25. There support should come in, but it is best to monitor it. Recommends sticking with it. Upside should come.

They provide different solar products in a number of different areas. A couple of years ago they had a business that wasn’t really doing so well operationally and they brought in a new management team, which had almost an immediate effect on turning the business around. Not only have they turned the business around, but they are making acquisitions. He thinks the wind is at their back for their products. Solar products have come down a lot in costs to the point where a lot of them are really comparable to what people would do in other situations. A good example would be a parking lot where you would normally string up lights that would be attached to the grid, but now they can make a solar parking lot and everything is off grid. Management owns about 45% of the stock.