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Economy. He looks at a lot of economic indicators, which help to forecast when a recession might be coming. A Bear market typically leads a recession by 6 to 9 months. He wants to make sure he knows where things are going economically, and right now they look very strong. Watches the Leading Economic Indicator and specifically, the 18 month moving average to make sure the leading economic indicator is ahead or above the 18 month moving average. When it crosses below, it can mean that a recession is coming fairly shortly. Also, likes to watch interest rates and make sure that there is a normal yield curve. Any time the yield curve inverts, he knows that it is a real solid sign that we can see a recession in the near future. Also, any time energy prices rise by 80% or more, in a given year, it usually leads to recession. This year we have had quite the roller coaster in energy. It bottomed out in March in the $42-$43 range. So far we are just under $60, and probably have room to about $75 before we have to be concerned.

Looks very strong. Just completed the acquisition of Covis, which was completed earlier than scheduled, meaning that all of their numbers are bumped up. Also, talking about doing another deal that could be done as early as the 2^nd half, which is only a couple of months away. It would be at least the size of Covis, if not bigger. This really opens up opportunities and expands the company. Thinks there is lots of potential.

If you are prepared to tuck it away over the next year or 2, he thinks it is going to continue higher. Have obviously done a great job in sports apps, but now are getting into the high video gaming business, which is a huge market. Also, the fantasy sports market is really taking off in the US and globally. This always seems to trade with fairly significant valuations, but management has always executed very well. Management has recently been buying stock.

At some point in time it might become a take over candidate. Very well-run. Thinks they will continue to do what they did with Bonterra (BNE-T) in oil, building and buying production in natural gas when it was out of favour. If you are a long-term player, you want the natural gas price to stay low, allowing them to make all kinds of acquisitions. When the natural gas price goes up, that may be when we get a couple of LNG projects or a pipeline, and at that point in time you will really start to see the value in the company. In the meantime they have a low decline rate and are generating a nice cash flow.

This has 2 different businesses. 1.) Manufacturing, their plasma base. 2.) Orphan drugs. Sees both sides of the business growing. Looks at the manufacturing as a “steady Eddie”, and it is really going to grow over the next few years. Have a number of companies they are currently selling plasma to, who are in different levels of clinical trials with the FDA. If some of these got approved, the amount of plasma needed will really ramp up. Also, 2 or 3 of their drugs could be fairly significant blockbusters that they may hold for cash flow or selloff. Has his eye on this.

Rails have done fairly well recently and have had a bit of a pullback. His preference would be Canadian Pacific (CP-T) as he feels that they may have more efficiencies that they can push through. Both companies are trading at the upper end of their valuation range. Both companies are controlled by the supply side of things, so he wouldn’t enter at this time.

He was involved in their recent financing. Just signed another deal and continues to roll out this mass of different retailers that are using their app. As they roll out more and more retailers, it means they are going to receive a lot of income. They receive income in a number of different ways, via service agreements, on a “per picture” basis and a fraction of the purchase price. Have been very successful with some of their initial launches. This is a steal at this price.

One of the biggest reasons he has had a tough time with this is that their numbers tend to be fairly lumpy. As they get these patent awards, the numbers really come through. And then there will be long periods where nothing happens. Underlying cash flow seems to be pretty secure. This is a stock that you really want to trade around. When it gets sold off by the market, that is the time to buy, and then when it gets bid up after they signed a couple of deals, it is probably the time to sell.

Just had some news in the last few days of the breaching of some debt covenants, where the bank has given them some relief. This kind of indicates how bad the slowdown is, considering their work is not directly involved in oil/gas. Didn’t get awarded the initial earthmoving contract for the Site C project, but are in a consortium that is bidding in another part of the project. There is a good chance they are going to get some work there. Also, anything that happens with LNG will obviously be popular and help them as well.

(A Top Pick May 28/14. Down 26.39%.) Started breaking down technically in August, so he got out. With lower revenue, they basically saw their margins compressed. Has this on his radar screen again. Just announced earnings and the numbers were quite good. Also, announced a dividend increase and a share buyback.

(A Top Pick May 28/14. Up 3.55%.) Scratches his head a little bit with why this hasn’t gotten a little more respect from the market. They’ve generated some nice numbers. Have been working on trying to high grade their customers. Going back in history, they have had some huge loan loss provisions as part of their numbers, which has always made the street rather nervous. Thinks the numbers go higher over the next few years. The leasing side is not growing much; it is really the Easy Financing that is driving all the earnings growth.

(A Top Pick May 28/14. Up 54.76%.) Has a breaking sports app which is pretty unique. It was rolled out in March and there were huge numbers of downloads through March and April. They could probably be through the $500,000 mark by the 2^nd quarter. Going into the 3^rd quarter, it might even touch $1 million. A similar model to TheScore (SCR-X) except for the valuations, which is significantly cheaper.

Watching this very carefully. What has caught the streets attention is their “exactEarth” business, which helps to pinpoint where ships are in the ocean. The street is discovering that this is probably worth a lot more than what it is being given credit for. At some point they might monetize this by selling it. Thinks they own 70% of it right now. The cash they would get would be used to grow their base business, increase the dividend or allow them to make some acquisitions.

On his radar screen for his income fund. If prepared to own it for a few years, then this is probably a great entry point. They collect and look after midstream assets. As long as you believe they are going to continue to pump energy out of the west and it increases at some point, then the company’s assets are just going to continue to improve. Great cash flow and a nice yield.

A pretty interesting little company. Drilled a couple of very expensive, very high impact wells in the Elmworth area near Grand Prairie, and he understands they had fairly good success with these wells. However, the market didn’t view it as that successful, because they didn’t immediately tie these in. It really starts to delineate the property. Just announced a new summer drilling program where they are going to drill a couple of more wells. Thinks they will eventually get acquired, because they don’t have the cash to continue these expensive wells.