COMMENT

They filed for bankruptcy. There was some funny stuff going on and it went down very, very fast. Today they closed a deal to sell OpenJaw for $37 million. Their debt situation when they went bankrupt was $25 million. There is a little bit of cushion, but he wouldn’t count on anything coming back if you own. It is probably 6 months of finagling to see if there is anything left.

COMMENT

This has been profitable for more than 54 years in a row. A slow, steady company which does small tuck-in acquisitions. Valuation is okay. Started paying a dividend in 2012 and have grown it since then. Recently bought a water infrastructure company, and there really aren’t that many public water companies you can play in. It will probably be a little more interesting in the next 2 years than it has been in the past 2. Solid management and good balance sheet.

WAIT

Basically satellite cameras. Contracts haven’t come in as much as people had expected. They were very good at raising money, and now it is a situation where they just have to deliver the goods. Based on the track record and history, he would give this some time before stepping in.

COMMENT

This has done nothing but execute well, deliver the goods, grow their backlog. They are growing very fast and the market cap is now big enough that people are starting to pay attention.

BUY

This company is planning for 10 years, not just one quarter. They are shifting operations to more efficient facilities. That causes disruptions and causes uncertain earnings while they make that shift. But when they make that shift, it is by far the right move to make, and their margins go up. There were 2 new contracts that they didn’t win this year, and the stock took a pretty big hit. The stock has gone way down and he thinks it is very attractive. They sign 10, 20 year contracts, and the new facilities will kick in and improve margins over time.

BUY

The company is up for sale, but it has been a long time coming in terms of getting any news. Meanwhile they continue to deliver the goods in terms of earnings. Very, very cheap. The valuation is attractive. The stock is worth more than what it is trading at now on a takeover.

COMMENT

Everybody is buying this because of its metal exposure, and the potential for a metals recovery. It has $9 billion in net debt. The last quarter was interesting, because they actually made a profit and their costs went down 10%-15%. They are doing the right things. If there is a recovery in metals, their margins are going to expand dramatically because of lower costs. He would use caution.

BUY

(Market Call Minute.) Made a big acquisition of OpenBet and financed it. It really has changed the company, but is going to take 9 months for that to be in the pudding. It looks pretty good.

COMMENT

(Market Call Minute.) A nice little niche company. It is quiet and sleepy, but it delivers the goods.

COMMENT

(Market Call Minute.) This has been pretty weak recently and they have US residential exposure, which you think would be good. Great company with good assets and trading very cheaply. It is just a matter of time before it does better.

BUY

(Market Call Minute.) This company has raised its dividend every year for 52 years. They made a great big acquisition in the US that looks good. You have to like this in the utility space.

COMMENT

(Market Call Minute.) A refiner and a retailer of gasoline. They are driving costs down. Last quarter was good and they continue to grow. Nice, steady growth. Making good margins.

TOP PICK

Supply chain management. The stock went public at $13 not that long ago, and it is now $48-$49. Growth is in the 30% range. What he really likes is that they have $108 million in cash. Growth is improving and margins are very, very high. Their average deal size is increasing, meaning their customers are confident and are buying more and are buying bigger software packages.

TOP PICK

Convenience stores and retail gas operations. They have been moving into Europe and buying lots of European operations. This is really a valuation play. They are trying to change the non-voting super share structure, so that when the youngest founder turns 65, it collapses and goes into regular shares. It is $10 cheaper because of the controversy on this. Dividend yield of .50%.

TOP PICK

Manufactures mobility assist devices. Just reported great numbers in the 30% range in terms of growth. Great balance sheet. Insiders own about 45%. Nice margins and nice demographics. 10,000 people turn 65 every day, and they are playing right into that market, so the outlook is pretty good. Dividend yield of 2.5%.