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

Latest Top Picks

(A Top Pick Dec 03/18, Down 56%) One of Canada's largest distributors of medications to senior's residences, retirement homes and long term care facilities. They divested themselves of surgery clinics. They got a much lower price than the market was anticipating and so have less cash to pay down debt. The core business, however, had excellent results and continues to improve. They announced a financing and he is going to vote in favour of it. It will give them the ability to grow the core business, which is fragmented across Canada. An easy double or triple over the next few years.
(A Top Pick Dec 03/18, Down 21%) It is down on a failing of them to buy back their stock and support it. He became activist with several other shareholders and they have now made some tough decisions about closing money losing plants and dropping unprofitable business lines. The latest results were a significant improvement in gross margins. They announced they re-instituted the share buyback program. It is a screaming buy.
(A Top Pick Dec 03/18, Down 19%) It is a classic value investment, down 50% from its all time high. Sales and acquisitions have slowed down but it is healthy and stable. They had some extra costs in building a new plant. And some self-inflicted supply chain problems. We'll see a big lift in 2020 because all the bad news will be out of the way in the next quarter or two. 6.5% dividend while you wait.
They are the only other publicly traded wine company. The stock is down because of a slowdown in exports to China. The retail wine space is booming because of deregulation that allows sale of wine in grocery stores. Retail wine sales are increasing. The big news was in July a juice company in Quebec bought a huge stake and will help increase sales through the grocery channel. He assumes if things go according to plan that it might want to buy the rest of the company down the road. He beefed up his holdings in the company. (Analysts’ price target is $0.28)
They develop and implement software in healthcare in the US as well as others clients for warehousing, distribution, and so on. They are growing their recurring revenues. They are changing from a perpetual license model to a SAS model, causing a temporary drop in revenues. Trading at two times revenues. (Analysts’ price target is $18.43)