In the automotive supply business, and focused on LED lighting. A lot of their product goes into the Ford F150 and other Ford products. Announced a couple of quarters ago that they were working with Tesla. Manufacturers are looking for ways to make vehicles lighter, and this is one of those ways. There is massive competition, and this is such a small company that its flies under the radar. It allows them to be really adaptive and to change. He continues to like this. Looking at their numbers, they always grow year-over-year, but not necessarily quarter over quarter. The last 2 quarters have been a little slower than what the market expected, so the stock sold off. This is a great opportunity.

Doesn’t think they will need to do an equity raise unless they do a big acquisition. They roughly have the cash flow they need to make an acquisition each quarter, of about the same size that they have been doing. His one caution is that the valuation is very high. Be prepared that an analyst could come out and say it is fully valued, resulting in the stock pulling back. If it did, it would probably be a great buying opportunity. Also, if they did an equity offering, that would be another great time to add to your holdings.

Just got their banking license which allows them to expand and deal more with the chartered banks on currency exchange. That is where their big business is. It has taken a little longer for it to get integrated into the growth mode, so you are seeing a little fatigue by investors, who waited for a long time for the license to come through. Their retail business is not their main focus or the driver. You just need to be patient.

Unless you have a really long term time horizon, you want to be pretty active in trading this. It tends to be volatile. It is probably currently at a time where you could Buy for the next trade up. There are going to be a lot of catalysts this year. It seemed to sell off hard late last year and early this year, and has bottomed and starting to move up. There will be a ton of news flow on this company. They are going to need to raise more money. Probably fully funded out until later this year or early next year, but at that point, they may have a drug approval, a royalty deal, etc., which might not necessarily come from an equity issue. They have a number of different irons in the fire and there are 3 or 4 that could be global blockbuster drugs. There is lots of opportunity long term, so you want to watch it, manage your position size, and trade around that.

This dropped $3.25-$3.50 today. There was a report claiming employees were pressured to hit sales goals that could have breached the company’s ethics. Barclays says that they don’t think there will be repercussions. Any time these types of allegations come out, it certainly freezes investors in their tracks. This bank is a fantastic franchise. They have lots of compliance and corporate governance in place. If you are a 3-5 year investor, and you get a selloff like this, it is probably an opportunity. However, he wouldn’t add a full position today, but would probably add some today and look at adding some down the road.

The whole sector has sold off all this year. Feels this one has been punished because of the overall sector selling off, as opposed to anything they may be doing. The company is really well run. They’ve done a great job in a number of different areas. They aren’t buying a lot of land, but seem to be able to continue to drill and find good opportunities on their own properties. Because of that, their development and finding costs are really low, especially compared to a lot of other companies. The company has a really strong hedging policy, and hedge about 50% of their production. If you are a longer-term investor, this is probably one of the best, well-run gas companies in Canada.

(A Top Pick Jan 13/16. Up 19%.) He still likes this and has been looking at possibly adding to his holdings. Good dividend grower.