Markets. Getting much more difficult to pick stocks but there are always stocks that are going to go up. You have to work harder, but have to be a little bit more careful. He likes broken stocks that are on the mend. An old business that has been around for a long time, easy to analyze because it has a lot of historical data behind it. If you are selling stocks or have cash, don’t rush out to buy. Just wait, there is going to be a pullback at some time. Bull market probably still has legs.


Digitizes videos, especially live sports. Great clients like the NBA, NHL, NFL, etc. Likes the company, but considers it a Hold now. It has a good future. Rogers deal for the NHL will be very constructive for this company. Great customer base, solid technology and will do well over the long-term. Try to get it in the low $0.50 area and you will probably do well.

communications / media

They own, operate and consolidate ESL schools, but not the ones where locals go, it is only for foreign students who come to Canada, who are less price sensitive, so pay more. 3rd quarter earnings were spectacular. Net earnings margin has been 20%. What really gets him excited is that they are now entering the student housing business. Have 4500 students who come to Loyalist schools today and they need to live somewhere. Have a pilot project starting in January with a small number of students and margins are fantastic. If they can grow this out over the next few years to what he thinks they can, that alone is worth potentially $100 million and the market cap today is only $80 million. $1.30 in 12 months is reasonable.

Financial Services

A processor of all sorts of nuts. Had a bit of a rough ride for the last 10 years. Margins got hurt about 5-6 years ago as they concentrated more on the industrial nut market but are now becoming a consumer’s packaged goods play. Have 2 very attractive brands. Have a big new plant, which is only running at 50% capacity and they can double their capacity without any extra investment. Entering into China as well. Thinks margins are going to expand pretty rapidly. No analyst covers this, which he loves.

Consumer Products

Thinks there is a lot more to go on this one. Not long ago, this was an $18-$20 stock. Just a simple leveraged bet on a turnaround in the Greek economy. Greek national bonds were upgraded recently, still weak, but nevertheless the trend is improving. Also, owns a big stake in a Turkish bank and Turkey’s economy is quite healthy. Have some real estate assets that are probably worth more than the average investor thinks.


Pipeline industry has a very bright future in North America, with all the production that is growing in the US and the Western part of Canada but this is not a super attractive stock. Has done really well, but it’s big and earnings are not going to multiply. Dividend is decent, but not great. If you are going to hold it for a long time, you are probably fine. Better opportunities elsewhere if you want dividends. It may be held back a little bit by US taper talks. Smaller plays that are more nimble could include Keyera (KEY-T) or AltaGas (ALA-T).

oil / gas pipelines

Home monitoring for patients in the US which is a growth industry. 10,000 people turn 65 in the US every day. Government has a problem. There is a lot of demand for health dollars and there are not a lot of dollars coming in. Government is pushing policies that will benefit patient home strategy, i.e. patients taking care of themselves. This company cobbled together a group of smaller businesses that some way or other, are in the home patient monitoring business and the idea is to get revenue synergies by cross selling. They are in the middle of a raise right now, and once that closes he expects to see the stock to go back North of $0.30. He could see this at $0.40-$0.45 in a year.

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