BioSyent Inc (RX-X)

3% conviction level for him. Founder run and owned. 70-80% of its business is from an iron supplement, that's a concern. Combogesic is a new product and not a huge part of its business. Trying hard to add lines of business. 

(A Top Pick March 29/17, Up 33%) They license health care products from outside of Canada. They have been very good at providing consistent return on equity as well as earnings growth. This year will be an interesting time. They are sitting on almost $20 Million as a war chest and adding to it every quarter. They are searching for opportunities and will be diligent in deploying it. They are an under the radar company.

(A Top Pick July 4/16. Up 4.26%.) They in-license products from companies that don’t have a marketing presence of pharmaceutical products in Canada. A very, very well-run company. A nice ROE at just under 30%. Have 2 new cardiology products that should be coming online towards the end of 2018-2019. No debt and about $14 million in cash.

A pharma company, but not one that does research and trials. They license products. Their CEO is excellent and they are a very well run company. Growth will come from their existing product suite plus additionally 3 more products. They are active on the business development front. (Analysts’ target: $9.13).

(A Top Pick July 4/16. Down 10.97%.) This in-licenses products and solutions from companies that are generally situated in Europe. They generally bring in in-licenses for companies that don’t want to set up their own sales force. A very consistent ROE generator. EPS has flatlined here, but he is optimistic that they are going to be getting back to a growth phase.

A bit tricky, because there is not necessarily a catalyst for earnings to really move in the near future. $9-$10 would be his more immediate target price. Extremely well-run. Very consistent ROE generator, and have been growing their earnings fabulously over the last 5 years or so. Have some new products they are going to be launching towards the end of 2017, which will be the impetus to see earnings and subsequently the stock to move higher. He likes this for the long-term.

(A Top Pick July 4/16. Up 0.61%.) He still likes this. Recently came out with Q2 results which were quite good. Top line growth was about 17%. Very consistent ROE generators. Just announced 2 cardiology products they are going to be launching in Q3, which at peak revenue generation should increase revenues by 60%. Excellent management.

A small growth company, very consistent ROE generator. They recently announced licensing of two cardiology products that should increase revenue by 60% and they recently broke out of a trading range.

Had been built around a single product that related to iron deficiency. They have taken fairly high levels of profitability and have been picking up other stuff, and a lot of those other drugs have taken time to get a sales channel. Now that we are into 2016, those other products are starting to contribute, so the dependency on a single drug is getting smaller and smaller. Stock had a huge run up, and got really overvalued. They put out a great set of results on Friday. ROE is still above 30%, and is trading at about 18X 2016 earnings. The stock had a correction and then stabilized at the $6.50-$7 level, and he thinks the stock is going to start to advance. Emerging as a nice, high quality stock.

(A Top Pick Dec 24/14. Down 31.61%.) Great company. Share price has not performed very well. They have delivered great results since then, but we have seen all this multiple contraction in the healthcare sector. Fairly narrowly focused around 1 drug. Its value is starting to get to the point where people are going to start to nibble. Be patient.

(A Top Pick Dec 24/14. Down 31.71%.) This stock came down early in the year because of concerns about their over focus on a single product. Corrected earlier in the year and has just been trading sideways. Looks cheap. He expects it will bounce back with the rest of the sector.