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Markets. Markets have been moving up quite a bit in the last month or so, and he has decided to build a little cash. Trimming some of the names that he thinks has been a little more overvalued. He’ll redeploy it when the market comes off. Has about 9% cash right now, which typically is about 4%-5%. As the market continues to move up, he will probably continue taking some money off the table in the short term.

Likes this company. The stock has started to perform well. Recently acquired Central Roast. They are in the right space at the right time. Recently did a financing, and thinks there is some difficulty in getting it completed. Very close to being breakeven now.

A Top Pick May 12th. There are only a couple of analysts following this. They do circuit boards for airplanes, which are complicated. The company has done a good job in growing earnings. Made an acquisition recently in order to give them full capacity utilization. They will bring this in-house so that utilization rates will go up and margins should increase. Very cheap.

There is worry about their 10% dividend, but he is not worried about it being cut at this time. Likes management. This has been in a tough position, as some of their restaurants were in Alberta. Mr. Lube, which they own, has been doing very well. Also, have royalties on Sutton, a real estate play. He still likes this.

Longer-term out, over the next few years, he thinks you will be rewarded. Half their market cap is in cash. When the oil/gas sector hits bottom, their earnings and revenue pretty much collapses. Also, it is offshore and a lot of their south American stuff has hurt them. He expects that over the next few years things will come back and you will be handsomely rewarded. The next couple of quarters are probably not going to look good.

Recently did a financing, and he participated. They have done a good job in increasing their EBITDA. Have grown by acquisition as well as organically, and expects them to grow quite a bit over the next few years. There is quite a bit of debt on the balance sheet, and he normally doesn’t like to own companies with a lot of debt, but they have been able to muddle through that and have been able to grow. Really likes the story.

Had problems with drilling a few years back. Prefers companies that have a lot of production growth, and thinks this is more of a play on the land mass. Doesn’t think this is the environment for buying this type of company.

Because it is one of the smaller banks with a lot of exposure to Alberta, the stock sold off. Earnings growth rate has come down quite a bit, so multiples have contracted as well. You could play the larger banks where you don’t have that concentration risk in terms of Alberta. Feels the next couple of quarters could be difficult for them. Had sold his holdings.

Their mining operation is fine in a really big bull market for zinc, but the costs aren’t very low. He isn’t a big bull on zinc. Zinc prices have moved up quite a bit, and he thinks it is going to come off.

(A Top Pick Sept 28/15. Up 23.28%.) Not sure who is buying this, but somebody is buying quite a bit of stock. Most healthcare stocks in Canada have not done well, but this one has. He really likes management, which underpromises and overdelivers. Recently made a few acquisitions which should be accretive. Only trading at about 8.5X EBITDA with very good growth over the next couple of years.

(A Top Pick Sept 28/15. Down 30.13%.) They try to help cable companies keep their clients from cord cutting. They were dealing with Rogers (RCI.B-T) and people suspected the contract was going to be cancelled, so the stock came off. Earnings growth has been kind of pushed out. They’ve signed a couple of contracts, and in the back half of this year will start to see them get deployed. Have about $1.60 a share in cash.

(A Top Pick Sept 28/15. Up 14.89%.) They’ve done well in terms of their earnings. Last quarter was a little lighter than what he would have liked, but they have a very sound balance sheet with about $1.60 a share in cash. Still feels comfortable with this. At some point he expects they will get taken out or will make an acquisition.

The whole sector has been difficult. Did a ton of acquisitions, and it was very difficult to ascertain what they were acquiring and if they were actually growing organically. Feels it is a promotional stock in terms of management and some of the people behind it.

His knowledge of this company is a few years back when he worked at Sprott Asset Management. Thinks there may be permitting issues. He likes the gold space in general which has a lot of momentum behind it.

This has been a big win over the last number of years. Located in Canada. The grades, as you get lower, get quite a bit higher, so cash costs should come down. There is a lot of consolidation in the sector, especially within Canada, so it could be an acquisition target.