Delavaco Residential Prop. (DVO.U-X)

(Top Pick Oct 15/14, Down 80.43%) This has been made a colossal disaster by the CEO who has been shown the door. His guess is that they either sell the company or sell some assets. Continue to hold it to reduce your loss.

(Past top pick, October 15, 2014, down 72.83%) Total disaster, the CEO was shown the door very recently. The CEO basically owes the company 5 million dollars, but can't apparently pay them back. The stock is worth more than it is trading for. It is a real value trap. He still owns it. He misjudged management.

This company was formed about 3 years ago to acquire US houses on the cheap. They did that and then went public. Their houses have appreciated a lot in value. They are starting to sell down their health portfolio, and their plan is to reinvest the cash into multifamily (apartment buildings), which is a very interesting and attractive space. He believes this is trading for less than the value than what you would get if it were liquidated. Expects they will start paying a dividend in the next couple of quarters.