BUY

Earnings are good, but the stock is kind of stalling out as if we are in a late cycle phenomena. Thinks you would see a good quarter out of them and things look good for next year. Would be very comfortable buying it here at around $11.

COMMENT

Automotive repair company that is based in Winnipeg, but have now extensive operations in the US. As an auto body franchise, they contract with insurance companies. Gets a certain amount of business from insurance companies in the Midwest. With the severe weather this year, they should have a good quarter. Sold his holdings because valuations got really rich. Thinks there are some valuation concerns in the market right now on this.

COMMENT

Likes the fact that digital businesses are overtaking paper businesses. Balance sheet looks pretty strong. Not ready to back up the truck as he was to see a few more quarters. There have been some changes in management. This is one he is prepared to grow into but wants to see another quarter. If the quarter looks great, he’ll buy a bit more but will then want to see another quarter.

PAST TOP PICK

(A Top Pick April 3/13. Down 32.01%.) News flow has been quite negative. Feels there was a lot of predatory research on the company, but there has also been some new fundamental stuff that has come up lately in terms of their relationship with the cash store. He got tired of the stock being battered by everybody all the time. In terms of valuation, the stock still looks attractive, but seems to be the whipping child for all the bearish researchers.

PAST TOP PICK

(A Top Pick April 3/13. Up 31.89%.) Has had a lot of negative press because of the Obama situation, but they produce a great stream of cash flow with a very steady 20% ROE. Although the chart is lumpy, when you own it in the context of a portfolio, that lumpiness kind of folds itself out. Still one of the cheapest stocks. Trading at 9.5X 2014 earnings and is projected to grow by 23% this year.

WEAK BUY

Feels this is a Buy, but amongst the large-cap financials, it wouldn’t be his strongest. Probably CIBC (CM-T) would be his favourite. Among the lifecos, this is the best one to be with.

COMMENT

Looking at a long chart, the stock has been going sideways for a decade. ROE is not particularly strong nor is there a lot of growth in the company. If you want to own the insurance area in Canada, there are other names he would prefer such as Manulife (MFC-T) or Intact Financial (IFC-T). Within the large-cap financials in Canada, he prefers CIBC (CM-T). Also, feels you get more bang for your buck in the mid-caps such as Home Capital (HCG-T).

STRONG BUY

Likes this and is adding to his position. Had a great quarter. Not as well known in the oil/gas services stocks, but the company is really, really profitable. Could have a really good run for the next 2-3 years. Could be the beneficiary of people looking for a fresh name. Yield of 3.5%.

BUY

Has done well, but given how high is ROE is, around 35%, he would have thought the stock would have had a bigger move. Good deal at this price. For people looking for value right now, this is a good name.

COMMENT

Not a fan of this company. Likes their product, but when he works through their cash flows, he doesn’t get it. Doesn’t see where the underlying product possibility is. ROE is 3%. A lot of analysts add back the amortization but he looks at the amortization of their films and wonders what kind of value his films have 2 or 3 years later.

COMMENT

Likes this. He would have thought the stock would have taken off more. They are doing a big buyback right now and what that does is it soaks up stock, makes the denominator smaller from an EPS point of view but also makes the ROE go higher. It should be on its way to $70-$80 but it is not.

BUY

Stock has performed well and it is very well managed. Would be comfortable adding to your position right now. Very nice dividend. They are set up for a good year coming up.

COMMENT

There tends to be a market seasonality where it is strong until March, April, May. Then there is a malaise and when the school year starts in September, we get going again. If your investment horizon is 3 months, then you could wait but for a long-term investor who is going to hold this for years, he would stay the course. If you really want to mitigate your risk, do a 3rd today, then in another 30-60 days do another 3rd, etc.

SELL

CEO is stepping down. He is glad of this as he was very disappointed in his reign. Would like to see this company get reconnected to the Canadian financial industry. He thinks it should be an absolutely integral part of the Canadian financial scene. Hopefully we’ll get someone who is more interested in growing the TMX in the context of a growing Canada. Not a great stock at this point in time to invest in and there is better value in the marketplace. The exchange world has changed. Easy money in this area was made 7-10 years ago.

WEAK BUY

Retailer of homes, but they finance a lot of their customers’ purchases. Started out as a “rent to own” but they’re getting more and more into the financing. In the past, they would have 7 or 8 good quarters and then would blow up. Management seem like pretty sharp guys and are slowly getting it. He is starting to slowly, but surely warm up to them. In the last 24 months, they’ve put up some pretty good numbers and there are some very bullish projections going forward. A Buy, but not with a lot of passion.