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Equities selling off, is this a buying opportunities? Names that they know well and are trading off unneccesarily could be an opportunity. Names like Enercare which he likes the yield on and the quality of the company, he views it as an opportunity to add to their position. Also, doesn't want to “catch a falling knife” so is happy to sit back and let the market ride it out. He has significant cash positions. Sitting on 80% cash. Had a good start to the year and now happy to sit back and negate risk.
He likes this at this price and feels it is in its early innings. Grenville Strategic Royalty is like a listed venture capital fund except you get a good dividend for holding it. It gives you exposure to 33 small-mid cap stocks at the same time. He likes the management. Likes the model and holds it in his mom's portfolio. 5.8 % dividend. They will likely increase their dividend in the latter part of the year.
They have had it as a past top pick before and has stuck with it. It is a risky stock. The company is a lender to the destressed borrowers. Callidus is owned by the Catalyst Group who are currently in a fight with the West Face Capital Group. He likes what they are doing and will continue to hold.
This is a name he is very leery of. There has been a lot of corporate governmence surrounding this name. Made a recent acquisition of Poker Stars. They have 60% market share. However, there has been a lot of issues surrounding the acquisition. There has been a lot of issues of the character of the companies involved. He is shorting this stock, but prefers other names in the gaming area. (NYX-V)
He likes it. It is an online gaming site. They provide the tools and software for others to provide the games themselves or lotteries. The Swedish lottery is their biggest customer. They like it because it provides a lower risk way of playing the online gaming business. The stock dropped after making a 150 million dollar purchase. Good long term story.
(Top Pick, Short, August 7, 2014, Down 16.43%) Recently added to the position. They don't understand their business. They seem to reinvent themselves every 3 years. They sold their best business which was the water heating business. Just to stand still they need to find 15% new customers. They sell door to door hoping to sell their products. It is likely that it is going down. Feels their business will deteriorate in the future. Since 2005 it has been down 70%.
(Top Pick, August 7, 2014, LONG Freehold Royalties down 37.94%, SHORT PrairieSky Royalty up 22.52%) Pairs trade, likes both business models. Felt that when PrairieSky came out last year it was overhyped and overvalued. PrairieSky was twice the evaluation. Prairiesky's yield was 3%, and Freehold's yield was 6%. When oil prices went down, they both went down. They exited the position in January.
(Top Pick August 7, 2014, LONG Freehold Royalties down 37.94%, SHORT PrairieSky Royalty up 22.52%) Pairs trade, likes both business models. Felt that when PrairieSky came out last year it was overhyped and overvalued. PrairieSky was twice the evaluation. Prairiesky's yield was 3%, and Freehold's yield was 6%. When oil prices went down, they both went down. They exited the position in January.
Markets. He wasn't immediately affected by the technical glitch in the system at the NYSE. There are about 60 exchanges that are trading the same stock. This was just another thing to make investors nervous. He feels that Greece leaving the euro is a relatively minor issue compared to China's issues.