Stephen Takacsy, B. Eng, MBA
Member since: May '13
Chief Investment Officer & Portfolio Mgr at
Lester Asset Management

Latest Top Picks

(A Top Pick Jun 03/19, Down 48%) They've grown their sales a lot over 5 years and improved margins. In March, they cut the dividend to accumulate cash to build a second line in Delta, BC, and this stunned the market, because the company had already spent a lot on the first line. Some investors sold. SWP announced it must move out of the old plant within 3 years, which concerned the market. They made decaff coffee without chemicals, and they have no competitors. This market is growing globally; SWP sales volumes keep growing. Horton's is one customer.
(A Top Pick Jun 03/19, Down 22%) Are the second-biggest supplier of scratch lottery tickets. Are only 3 players in this space, and PBL is increasing its market share. It is expanding into technology (internet lottery) in the U.S. Scratch ticket sales are up YOY, despite the pandemic. Their bingo halls are reopening now. Generates great free cash flow. Grows organically and by acquisition. He'd still buy.
(A Top Pick Jun 03/19, Down 33%) Bell announced a deal with them today. The threat of cybersecurity has increased as more people work from home, and BB is the leader is enterprise security software. BB also leads in car entertainment and driver assistance software. They are a pure software play now with $1-billion in revenues, mostly recurring. He doesn't expect Fairfax to buy BB, but thinks there is a shareholder review now to enhance shareholder value. He feels BB is grossly undervalued. Trades at a low 2.5x revenues. BB boasts recurring revenues and high margins, too.
They made huge strides in the past year. They are Canada's biggest provider of meds to seniors' homes. Stock has risen over 50% during the pandemic, partially because they just completed a highly accretive purchase of another company. They have a strong balance sheet now, so they can continue to consolidate in a fragmented industry. The only other big player is Shoppers Drug Mart. CHH has a good balance sheet. Contracts with these retirement homes are coming for renewal in the coming 12 months. This stock could double in 12 months. He expects organic and acquisition growth. (Analysts’ price target is $0.38)
They provide and manage e-commerce platforms for Sobeys, IGA, Carfor and others. Trades at only 1x revenues vs. Shopfiy at 40x. They just raised capital to acquire smaller players. (Analysts’ price target is $7.40)