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Market. He doesn’t obsess about broad market conditions, but the US election is hard to ignore. It is clearly one of the biggest elections in years. Regardless of who wins, he thinks it will have a big outcome on equity markets. On top of that, there are a lot of other things going on. The UK has announced they are going to formally exit the EU in Q1. China is flexing its muscles in the South China seas. There are issues with Syria. The way he invests, he can largely ignore these things because he uses a lot of pair trading. When he is Long and Short, it allows him to essentially to take out the movements in the market. Instead of worrying whether the market is going up or down, he just focuses on the individual companies.

He tends to be leery of airlines in general. Has a Long position in this, but it is a hedge position. This is trading at very cheap valuations, at less than 2X PE, because it has a lot of debt. It has the most debt of any airline in North America. It should trade at a premium to Westjet (WJA-T) where the fundamentals are very poor.

Recently bought this. This is the 1^st day the Element Financial shares are formally split into 2 companies. You now have ECN Capital (ECN-T) and Element Fleet Management (EFN-T). Thinks both are undervalued. This one is trading at about 10X next year’s earnings. Its group trades at about 20X. Both companies are looking to do some acquisitions which could transform things in the next couple of quarters, but both assets are attractive right now.

Recently bought the stock. This is the 1^st day that Element Financial shares are formally split into 2 companies, ECN Capital (ECN-T) and Element Fleet Management (EFN-T). Thinks both are undervalued. He tends to do this in terms of the Price to Book ratio. The BV is more or less about $4, so if you assign a Price to Book ratio of 1 to 1.25, you get a price of $4-$5 for a share price. Both companies are looking to do some acquisitions which could transform things in the next couple of quarters, but both assets are attractive right now.

He used to own this, and it didn’t work out well. The whole sector seems to trade in line. He just gave up on management. It has been a rough patch for them in the last 2 years. He has better places to put his capital.

Video streaming. Their technology is not particularly sophisticated, and he doesn’t see a lot of barriers to entry. He cut the cord on this a couple of years ago, and now watches BNN on his Internet connections. His experience with this company as a consumer, has not being great. This is not a stock that he would invest in.

Being acquired at $19 per share. He sold his holdings at that price. The reason it is trading so close to the takeout price is that they are going to continue to pay the dividend until it is taken out. If you get taken out on the last day of January, you could potentially have an extra $0.48 coming in. You also defer capital gains until the next fiscal year.

Alberta is the best auto market in all of Canada. They sell a lot of expensive pickup trucks. With oils’ protracted downturn in the oil/gas industry, he thinks it is going to have continued impact on this company. They are trying to diversify by picking up dealerships outside of Alberta, but he still thinks there is a big overhang on the stock.

A technology company. When you have a company that has cash burn and little to no revenues, that is a rough combination. Until there are some revenues, it is not justified to putting any capital into this name.

(A Top Pick Nov 24/15. Down 24.3%.) Long. (A Pairs trade with a Short on Westjet (WJA-T). This company has the oldest, least efficient fleet in all North America. Their planes are about 29 years old. Being such inefficient planes, they are the biggest beneficiary of cheap jet fuel prices. The company decided to buy more efficient planes, which he did not like, so he sold his position at the end of June. This trade is more driven by Westjet.

(A Top Pick Nov 24/15. Up 80%.) Long. (A Pairs trade with a Short on Canadian Western Bank (CWB-T). This is a name that nobody liked and has traded down as low as $7 in Dec/15. It is a classic textbook example. If you are a CEO and fighting a Short Seller, you 1) deliver operationally and 2) put your money where your mouth is. In this case the CEO went out and bought shares, increased the dividend, completed a normal course issuer bid and took the extraordinary step of getting an individual evaluation of the company done. He also said if the share price did not reflect the underlying value, he was going to take the company private. Still feels the stock is extremely attractive.

(A Top Pick Nov 24/15. Down 1.28%.) Short. (A pairs trade with a Long on Callidus Capital (CBL-T).)

(A Top Pick Nov 24/15. Up 10.5%.) Everyone should have this in their portfolio. It is low maintenance. At the beginning of the quarter, they know what 90% of the revenues are, and spend the next 90 days getting the extra 10%. A nice play on global logistics and global growth.

(A Top Pick Nov 24/15. Down 7.28%.) Short. (A pairs trade with a Long on Allegiant Travel (ALGT-Q).)

(An update from Jerome!) (A Top Pick Feb 8/16.) Short. (A Pairs trade with a Long on Mylan- MYL-Q). It went down about 50% in one day, and he figures it doesn’t get better than that, so he covered this at $50 on March 15/16.