This has done well. A very consistent company. They have very long-term contracts with companies that want to outsource their server farms and other capabilities on the computer side. As a result, this company has roughly 7-9 years’ contracts of a lot of money in advance. Extremely good visibility. Year-over-year sales growth has been fairly modest. About a 5% lift in earnings. Extremely disciplined in their acquisitions, so he expects the stock will mark time for the moment, waiting for another significant acquisition opportunity.

(A Top Pick Oct 16/15. Down 2.43%.) It looks like they are back on track as far as making money. In the near term, the next couple of quarters won’t be great, but looking out over the next 1-1.5 years, it should be interesting.

(A Top Pick Oct 16/15. Up 33.58%.) Airlines are facing a very big problem in that a whole bunch of commercial pilots are going to be retiring in the next 10 years. This company is also makes money on the military side. This is still a good opportunity.

(A Top Pick Oct 16/15. Down 40.26%.) Rogers was using their product, but decided they were going to do it themselves. Ended up writing off $500,000, and are now signing up with a US company. This company still has a great product. They are selling it into Europe. Thinks there is good opportunity going out for the next 3 years. A very small, competitive industry.

Ranks 157 and is in the top quarter of his database. Sales were down 3% year-over-year, but still managed to squeak out a 52% increase in earnings. Earnings estimates have been shaved by about 8% in the last 90 days, and are expected to grow by about 60% from $.23-$.27 in 2017, against a PE of 25X. Unfortunately, free cash flow is not positive.

They put a tiny quantity of a specialized chemical into petroleum products, and then a spectrometer finds out if it is the proper concentration. They sold this part of the business to a Swiss company and have a 5+ year kind of a royalty stream. The company is working to sell some very sophisticated equipment into the semiconductor space. They are also beating the bushes in Israel, where they have had a long-term source of innovations. If they are successful in 3-D imaging and a portion of extremely sophisticated stuff they are doing in the semiconductor space, it would be optimistic. He sold his holdings.

A growth by acquisition company, engaged in aviation manufacturing. They have some scheduled chartered airline services. The company has done extremely well. Ranks 63 in his database, roughly the top 10%. Earnings are expected to grow modestly by about 5%. A PE of 17X. ROE is reasonable at 14%. Unfortunately, free cash flow currently is -5%. This doesn’t seem cheap. Prefers others.