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Economy. The recent rise in bond rates indicates investors seem to be suggesting a return of inflation. Part of that revolves around the US particularly because of the dramatic pickup in household formations. Since house formations and housing represent about 42% of the US CPI, expectations are that the strength will help with 1) employment and 2) will ultimately lead to higher prices which then may also lead to a higher CPI. The Fed has stopped tapering and globally there seems to be an indication of bottoming in commodity prices, and an expectation of an improvement in the economies over the next 12 months. Rates are a little more normalized now. The previous run, when there was a steepening of the yield curve in Aug/11, analysts are currently expecting 10 year bond yields, currently around 2.25% may get as high as 3%, and in 2011 there was a 29% lift in stock prices in the following 8 months. Doesn’t know if there is going to be a 29% lift, but he is certainly expecting it will contribute to a positive backdrop for stocks, and particularly for Canadian stocks because of being providers of raw materials.

A fabulous semiconductor company based out of Israel. They design chips for communications, but have someone else make them. A big concern is that one of their large customers has just taken delivery of the latest model, which should keep them going for another 3 years, but when they start developing their new 1 GB solution, they are going to design this in-house. EXchip is also internally creating their own 1 GB chip, which will keep them going. Feels they will make easy money in free cash flow, but the stock price will become depressed because of that.

(His largest holding at about 11%.) They basically make crystals. Their near term potential customer is a large Hadron Collider in Switzerland, which has been restarted and is attempting to more than double the power. Hopefully, between now and the end of June, there will be some orders. Also, have a 3-D printing application, working on metal and ceramic printing, and expects to have that prototype done by the 4^th quarter of this year. He is still quite positive on the company.

The key here is using mobile apps in order to get at sports scores. Recently acquired a fantasy game company that allows you to create NHL and NFL games. Separate freestanding companies who have just the fantasy game portion, are trading at extremely high valuations. Thinks there is an opportunity for this company to take their 10 million subscribers, and have them access and use the fantasy part, which will then provide more opportunities for advertising and revenue growth. Management has done a good job historically. Think you will be happy with what will come.

Have a fair amount of cash. Earnings expected to be $0.16 this year, compared to $.013 last year. Forecast for Sept 16 year is $0.19. Trading at about a 19X PE multiple. Working on some large contracts, and he thinks this is still a pretty good opportunity.

The current ranking is in the bottom 3^rd of his database, in part because the PE multiple is based on earnings estimates for 2015 of 30X earnings, but if it turns out the company is successful in meeting analyst forecasts for 2016, the PE drops down to 12X against 27% earnings growth giving a PE to growth multiple of about 0.5. Anything below 1 is viewed as attractive. ROE is attractive at 17%. They provide college basketball and football games, and he thinks there is pretty good growth opportunity for them. Pretty good opportunity over the coming year.

Their specialty is “Shake and Quake”. They add vibration to your theatre chair. Cineplex (CGX-T) has a variety of locations in Canada with these chairs. Unfortunately there is not a lot of coverage on the company. They are transitioning from paying for the installation, to getting their customers to pay for it. That would dramatically reduce their working capital.

The investigation in Québec has not been completed. His model shows earnings being shaped down by about 6% in the last 90 days, however earnings are expected to grow by 76% in 2015. That gives an 18X PE multiple. Earnings are forecast to grow by 40% in 2016, giving you a 13X PE multiple. If those earnings can be hit, it would suggest that the stock looks to be attractive.

Their key is a combination of both aluminum and beryllium which gives a combination metal which can be up to 63% beryllium, giving you something that is lighter than aluminum, but 3 times stiffer. Stock is held back because they are expected to having a financing. They needed a 2^nd furnace to provide capacity for the new expansion they announced. New contracts are coming very quickly. The 1^st casting should be delivered within the next 30 days, which should be quite positive. Advantage of the 2^nd furnace is that it will be a lot more efficient than the existing furnace. All the prototype work can be done on the old furnace allowing for much more efficiencies. If they did a financing, he would be interested in participating.

(A Top Pick June 10/14. Up 15.4%.) He is very pleased with this. They end up doing well on free cash flow generation. Continuing to transition from commodities (cell phones). Their longer-term plan is to move towards aerospace and medical, where the margins are better.

(A Top Pick June 10/14. Down 63.76%.) Still holds a tag end of this. These are competent operators but the challenge is the commodity price.

(A Top Pick June 10/14. Down 2.17%.) This company continues to do well. They are a free cash flow generator. There is good opportunity for the business.

They do messaging for mobile applications. Thinks there is a pretty good opportunity. According to the analyst that covers them, they are expected to lose $.08 for the January/17 fiscal year. He prefers companies that are more free cash flow generators. Thinks it will be a bit of a challenge for them in the near term.

If their technology is successful, it will hopefully reduce the power consumption in a chip and also integrate a lot of different components including optical gear within the chip. They are expected to have a lot of partnership announcements from now through to the end of June. Thinks people are waiting to see what those partnerships might be, and if it will lead to actual sales.

Their key is supply chain management within the 4 walls of a hospital, giving them better efficiencies and inventory control. Have an extremely large recurring revenue business. Expected to have earnings growth of 62% this year, giving a PE multiple of 32X, which is not cheap, but earnings next year is expected to be just as brisk giving a PE multiple of 19X. He thinks there is opportunity to continue to win more hospitals. Good opportunity for a one-year investment.