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Markets. This year small caps in Canada have outperformed for the first time in years. A lot of golds got moved up and out of small cap indexes. A lot of managers didn’t own gold earlier in the year. He tries to pick the best stocks in each sector and to have a well diversified portfolio. It has a lot of sector rotation recently.

BUY

This stock has done well over the last 6 months. The stock has moved up when they have not come out with great results. People are anticipating something. It is quite liquid so it is easier to trade. He likes to hold things for about 3 years. The recovery in the energy sector will benefit them.

WATCH

The whole sector has been soft over the last year and a half, then there was bad news today. The problem is sentiment overall. Their costs are up and it is hard to know why. He has a very small position. Don’t add to it but keep an eye on it. There may be tax loss selling and a bounce into January. He would like to see fundamentals improve.

HOLD

The last couple of quarters have not been good for the company. He does not think they will come out with stellar quarters. $10 might be a floor on the stock. He would continue to hold it but there are head winds in the short term.

WATCH

Now they moved into more water and they still have juices. He thinks they will try to exit that part of the business. It ran up to close to $22 and now it seems to go down every single day. He thinks there is a seller out there. They made acquisitions with debt. It is not at a high multiple so he might take a look at it. It looks interesting at these prices.

BUY

He is one of the largest holders of the stock. It came off because they did an issue. They make chemicals that would go into a lot of P&G products. The stock has been moving up in the last few days on a lot of volume. There is still no analyst coverage. He is comfortable with the story and thinks the next couple of quarters will show more strength.

DON'T BUY

There has been no good news in the last couple of quarters. He got out when he saw no growth coming through. Regulatory things going on in Europe have hurt them. This is not one of the top twenty names you want to own.

BUY

They will benefit from more activity in the oil patch. He likes the management team. It has a good balance sheet. It is one of his favourite names and he owns a lot of it.

BUY

This is a really good story. It is too illiquid for him to buy in his fund. It has moved up. They did an issue. He would not be selling it here. It is good for individuals.

COMMENT

Airlines are so volatile. He played it around $7.50 and made around 20% on it. It looks cheap and always does but the fundamentals are very strong. The balance sheet is getting better and a lot of capacity has been brought on.

PAST TOP PICK

(Top Pick May 12/16, Up 49.16%) They have good visibility. Now there are a few people covering it. Earnings were up over 20% last quarter. They made an acquisition and so now can ramp up their manufacturing. It is still very small and they have one very large shareholder. He thinks it will continue to do well.

PAST TOP PICK

(Top Pick May 12/16, Up 1.44%) There was controversy with a contract they had with Rogers. They rolled out with a couple of other companies. The upside is quite strong and you will start to see other deals. It is a way to play the defense against cord cutting.

DON'T BUY

This has been a letdown. He has stayed away from it. It is hard to get a grasp on what they are doing. He likes the technology and the fundamentals. It is very lumpy. He needs to feel comfortable with management teams running these things. He is not getting a clear vision on how they are going to build the business.

WATCH

The stock price has been moving up. The earnings have been coming through. He still has to do more work on it. It is a technology company. It looks like the earnings growth is there. There is no analyst that follows it at present.

BUY

It is a buy or a hold. He is one of the largest holders. This has been a top pick of his. It is a health care company, the top performing one in Canada this year. They did a very good job at increasing their earnings. Last quarter the stock took off. A lot more small cap managers are looking at it now. He likes the management team from a previous company.