Perk.com Inc (PER-T)

(A Top Pick Aug 19/15. Down 35.35%.) This has advertising that you have to watch before you play a game or watch a video. If you do, you earn Perk points that you use for different things. The stock is trading at a fairly cheap valuation. Have been growing their business and have made some very smart acquisitions. He still likes.

A really interesting one. In the loyalty business and generating cash flow and earnings off of people watching videos. A big issue right now with things like YouTube, where a commercial comes up and allows you to skip the commercial in so many seconds, and we press the skip button. Perk has figured out a way to get people to watch those commercials, allowing them to really target in on their market. As a result they are seeing huge growth in user base and revenue numbers really ramp up because they are able to charge their advertisers more, as they are really targeting in on exactly what those users want to experience. Stock is super cheap. They are EBITDA positive, so are making money. Probably one of the cheapest companies in Canada from a technology standpoint. Probably trading less than 5X EBITDA.

They have figured out a way to get people, particularly millennials, to watch the ads on videos, such as YouTube and get paid points to do that. They can then convert those points either into online credits or cash. The company is profitable and have a growing cash flow. Now that they have raised this money, it is going to allow them to expand and really push their business to bigger levels.