Dominion Diamond (DDC-T)

(Top Pick Mar 7/16, Down 29.19%) It was a mistake. They did a good job operationally. They have a high population of small diamonds. There have been some inventory write-downs.

This company has underperformed, but has a great balance sheet. He tried to buy, but did not get his price. The next quarter is probably not going to be that good for them and there may be tax loss selling. Look to get in at the $11 range.

They had a fire in the Northwest Territories. That has been fixed. The selloff in their shares was based on a selloff in the high luxury market. Real diamonds can increase in value whereas synthetic ones cannot.

This has been challenging. They own 2 world-class diamond mines. The stock sold off when there was a fire at one of the processing plants, which curtailed production in the 2^nd quarter. It should be able to get that back up and running within a month or 2. Ridiculously inexpensive, trading at about .6X its BV, and trades at an enterprise value to EBITDA multiple of about 2 or 2.5 times. Just sold their corporate head office for $85 million. He still likes the name.

(A Top Pick May 14/15. Down 37.97%.) Sold his holdings shortly after at around $20.

He thinks it is trading at 6-7 times if you take the cash out. Another mine is coming in 4 years. He hopes they will use their cash to reduce the shares outstanding. There is incredible value to be unlocked in this company.

(A Top Pick May 14/15. Down 32.85%.) Sold his holdings at $20, so his clients made money.

He is not sure if diamonds are a good investment. This company looks cheap on a statistical basis. If you have a longer term view there might be something there.

Owns 2 diamond mines in northern Canada. Looks cheap statistically at almost half of .6 of NAV. It really comes down to diamond prices, and he understands there is a glut of polished stones. To buy the stock, you have to understand diamond pricing and what the catalyst is to push diamond prices back up.

(A Top Pick May 14/15. Down 30.11%.) They reported disappointing earnings and the analysts quickly ratcheted down their estimates. Sold his holdings.

It is now a pure mining company after they sold off Harry Winston. It has a dividend, but trades above book value. He expects about 12 times forward earrings. Analysts are revising their estimates up. So now we are seeing a lower multiple. They are having a great production run.

Was Harry Winston. Some very interesting assets. First nations may be turning to support them because it means jobs.

(Market Call Minute) China is the incremental buyers of Diamonds and their economy has stabilized.