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

Latest Top Picks

(A Top Pick Apr 28/20, Up 12%) They did a 20-1 share consolidation, so the stock is up a lot, and changed their name. It's Canada biggest institutional pharmacy serving senior care. The stock was untouched by Covid, because seniors still needed their meds. Also, they made several big acquisitions, and they winning business from peers. They're launching telemedicine services and, with Think Research, will supply virtual care to seniors facilities they already serve. In the next 15 years, the number of seniors will double in Canada. This is a safe way to play Canada's demographics. CRRX fixed their balance sheet, too. It trades a reasonable PE. He owns 3% of this company.
(A Top Pick Apr 28/20, Up 137%) They offer e-commerce services for big, complex companies like Sobeys and IGA (vs. Shopify which serves small businesses). They just scored a huge deal with Aldi (https://www.globenewswire.com/news-release/2020/12/14/2144279/0/en/Aldi-signs-agreement-with-mdf-commerce-for-the-implementation-of-Click-Collect-grocery-service.html). MDF also enables supplier to bid on government contracts. They do a lot of M&A in this segment. About 80% of sales are highly recurring, yet the stock trades at only 2.5x sales vs. Shopify's 35x. True, the smaller MDF isn't growing as fast as the bigger Shopify. MDF should be trading much higher. Growth is speeding up as businesses move online.
(A Top Pick Apr 28/20, Up 16%) They own 80 LTCs in BC and Ontario. SIA got hit by negative headlines during Covid (seniors died) and higher vacancy rates. This is transitory. Long-term, the number of seniors will double in 15 years in Canada and vacancies should decline. SIA has a solid balance sheet and pays a safe 6.6% dividend yield, guaranteed in part by government-guaranteed cash flows from their long-term care centres. The pandemic has forced governments to modernize this sector, so there will be more government funding to upgrade these LTCs. Expect growth to resume next year.
It's Canada's second-biggest wine seller. The stock is down 45% in the last three years, despite growing sales and earnings by acquiring new product and controlling costs. Good managers and brands, strong cash flow and boasts over 40% gross margin. Yet it trades at only 12x PE. Cheaper than U.S. wine IPOs. He expects ADW to report record profits and sales in coming months which should return shares to the mid/high-teens. Also, they're buying back shares. (Analysts’ price target is $16.25)
A world leader in designing antenna for phones. Samsung is a major client. BYL is riding a wave of huge infrastructure spending needed for 5G. Their growth hit an air pocket during Covid when telco infrastructure spending slowed down. 2021 should be the turnaround year when that spending resumes. BYL also lowered their high debt to reasonable levels. Trades at 6x EBITDA vs. peers who are trading at more than twice as much. (Analysts’ price target is $1.57)