Input Capital Corp (INP-X)

He owned it even when it was private. He has cooled on it a bit since they launched the mortgaged streaming product. The canola may not be catching on as fast as he originally thought. He sold a while ago.

He says they do not own it as the company is attempting to build a brand new market for canola streaming. They have had some lumpy earnings quarters. He continues to watch it, however.

(A Top Pick Dec 12/16, Down 24.70%) Canola is the fastest growing crop and the most profitable. This is still early days for them. They are sitting on a lot of cash. You can get in on the cheap. He would buy it and put it away.

(A Top Pick Dec 12/16, Down 17%) They are growing very quickly. They can command a higher price for canola. They are now at 2% of the market so there is tremendous growth potential. They just instituted a dividend last year and are now buying back shares on the market. There will be growth there for the foreseeable future.

Finances input costs for farmers. In return, they don’t get paid money, but get paid a piece of the crop. The company has had trouble making this work as there is a lot of volatility. He likes the people who run this. You should wait until they work this out and iron out the kinks in the model.

Management are really sharp guys. Canola prices have remained quite stable for some time. This is early days for this company. They are barely scratching the surface with all the farmers out West. This is the time to buy if you want an agricultural stock.

He likes the people behind this. It is very innovative and novel. It is choppy, because it is agriculture and it is new. The business model could work, but they have to iron out some of their kinks.

A unique business model, and it has only been around for a few years. They give money to farmers in exchange for a revenue stream on canola production. What drives the stock higher is their deployment, i.e., how many farmers can they sign deals with over the next few years. This is usually seasonally. Expects there will be news over the next few months, in terms of how much capital they are going to be able to deploy this year. These are early days, and they are just scratching the surface. There are a lot of canola farmers in Western Canada.

They buy streams of canola production from farms. They have 112 farmers. They could triple or quadruple quite easily. They pulled back in the last few quarters. He has about 3% of the company. It is still early days for them. 2.02% dividend. (Analysts’ Target: $2.66)

(Top Pick May 11/15, Down 45.21%) People who are too clever still have weather and farmers to handle. The earnings have been lumpy. You can’t project them forward and this is disturbing the markets.

An interesting little firm. It is in the general royalty investment area. They put up money to help farmers invest in growing canola. They assign a scientist to help it in an optimum way to get high yields. They finance it and then get some of the crop back at a certain price. Conceptually he likes what they are doing, but their stumble has caused a bit of a stall and concern.

They finance farmers to grow canola. A couple of farmer’s contracts went bad and they accepted the Canola as partial compensation. No one else is pursuing this market.

They surprised the market with news. Management has done an excellent job in the past. There will be set backs along the way. He is watching over the next couple of quarters to see what happens with the numbers. Hold on if you own it.

There are always big expectations for cash flow coming from grains, and then it never actually comes. It looks like they are on the up and up now, but be careful because they could have some earnings misses as well. He wouldn’t own this until they could show that they could generate cash flows and increase the dividend over the long-term. Be careful with this.