Latest Expert Opinions

Signal
Opinion
Expert
HOLD
HOLD
July 26, 2017

This continues to fire on all cylinders. Numbers in the last few quarters exceeded analysts’ targets, and expects that will continue for some time yet. They’ve done a good job of increasing same-store sales as well as the number of stores. They’ve gone from a $1 format to higher price points, and are also accepting credit cards.

This continues to fire on all cylinders. Numbers in the last few quarters exceeded analysts’ targets, and expects that will continue for some time yet. They’ve done a good job of increasing same-store sales as well as the number of stores. They’ve gone from a $1 format to higher price points, and are also accepting credit cards.

Bruce Campbell (2)
President & Portfolio Manager, Stone Castle Investment Management Inc.
Price
$124.140
Owned
No
COMMENT
COMMENT
July 26, 2017

This has been disappointing. They’ve changed their compensation program for managers, where they used to operate everything out of head office with no individual profit centres for their individual locations. Now, the individual manager is responsible for their profit and loss. He is hoping to see an uptick in profitability when this starts to come through, probably another quarter or two. Long-term this should be a very strong business, because they deal with addiction treatment in a number of different forms.

This has been disappointing. They’ve changed their compensation program for managers, where they used to operate everything out of head office with no individual profit centres for their individual locations. Now, the individual manager is responsible for their profit and loss. He is hoping to see an uptick in profitability when this starts to come through, probably another quarter or two. Long-term this should be a very strong business, because they deal with addiction treatment in a number of different forms.

Bruce Campbell (2)
President & Portfolio Manager, Stone Castle Investment Management Inc.
Price
$0.125
Owned
No
COMMENT
COMMENT
July 26, 2017

This has been hit extremely hard. It trades to a pretty significant multiple and probably got ahead of itself. On the news and speculation that some kind of reimbursement was going to come, the stock sold down. The code changes are not being reimbursed to the same degree. In the past, they’ve been able to use their currency to a certain degree to make acquisitions. They have just secured a bigger line, so it looks like they’ve shored up their business fairly well. Fairly good cash flow. The reimbursement is going to hurt them, and then the private pay insurance, the majority of their business, will end up coming down over time as well. They are going to have to replace the lost revenue with increased business, either organically or by acquisition.

This has been hit extremely hard. It trades to a pretty significant multiple and probably got ahead of itself. On the news and speculation that some kind of reimbursement was going to come, the stock sold down. The code changes are not being reimbursed to the same degree. In the past, they’ve been able to use their currency to a certain degree to make acquisitions. They have just secured a bigger line, so it looks like they’ve shored up their business fairly well. Fairly good cash flow. The reimbursement is going to hurt them, and then the private pay insurance, the majority of their business, will end up coming down over time as well. They are going to have to replace the lost revenue with increased business, either organically or by acquisition.

Bruce Campbell (2)
President & Portfolio Manager, Stone Castle Investment Management Inc.
Price
$4.260
Owned
Unknown
COMMENT
COMMENT
July 26, 2017

This business is very strong and they continue to execute very well, both from the bus business as well as their coach business. Over time, they’ll probably pull some synergies out of the coach business as well as a stronger business for aftermarket parts. Trading at a reasonable multiple, and is not super expensive.

This business is very strong and they continue to execute very well, both from the bus business as well as their coach business. Over time, they’ll probably pull some synergies out of the coach business as well as a stronger business for aftermarket parts. Trading at a reasonable multiple, and is not super expensive.

Bruce Campbell (2)
President & Portfolio Manager, Stone Castle Investment Management Inc.
Price
$50.370
Owned
Unknown
COMMENT
COMMENT
July 26, 2017

Artificial intelligence machine learning is such a huge thing these days. This company had the technology and a fairly interesting machine learning and AI background for a number of years. They recently did a merger where they acquired a significantly bigger company in Europe, and it has taken a little while for the stock to digest what has happened. Now it looks like there is some traction in the stock price. The company continues to add new users to their platform. Once they are able to turn on the monetization of all those users, there should start to be some revenue and cash flow.

Artificial intelligence machine learning is such a huge thing these days. This company had the technology and a fairly interesting machine learning and AI background for a number of years. They recently did a merger where they acquired a significantly bigger company in Europe, and it has taken a little while for the stock to digest what has happened. Now it looks like there is some traction in the stock price. The company continues to add new users to their platform. Once they are able to turn on the monetization of all those users, there should start to be some revenue and cash flow.

Bruce Campbell (2)
President & Portfolio Manager, Stone Castle Investment Management Inc.
Price
$2.850
Owned
Unknown
COMMENT
COMMENT
July 26, 2017

Thinks this is ultimately going to be a huge growth business, and Canada is probably going to be the trendsetter as far as growth goes. Expects this will become one of those global companies that ends up taking massive market share as the years go by. He is waiting to see how provinces deal with this on regulations. If you are a longer-term investor, you just ride this out, but if you are a shorter-term investor, you should be tactical and when things are crazy and getting out of hand, you trade in and out.

Aphria Inc (APHA-T)
July 26, 2017

Thinks this is ultimately going to be a huge growth business, and Canada is probably going to be the trendsetter as far as growth goes. Expects this will become one of those global companies that ends up taking massive market share as the years go by. He is waiting to see how provinces deal with this on regulations. If you are a longer-term investor, you just ride this out, but if you are a shorter-term investor, you should be tactical and when things are crazy and getting out of hand, you trade in and out.

Bruce Campbell (2)
President & Portfolio Manager, Stone Castle Investment Management Inc.
Price
$6.630
Owned
Unknown
WATCH
WATCH
July 26, 2017

A fairly new company and has only had one conference call with management. Any time you have spine surgery in the US, there has to be 2 other people monitoring. Having 3 people is not very efficient, being set up by 3 different groups and billed 3 different ways. This company has formed a partnership with the spine surgeon in order to integrate the 3 parties into a unified billing, and they split the revenue with the surgeon. There hasn’t been a lot of history on this, but there has been phenomenal growth. They’ve been focusing in Colorado and have hired some sales people in order to expand out into other states around Colorado. It is fairly early, but it is one to watch.

A fairly new company and has only had one conference call with management. Any time you have spine surgery in the US, there has to be 2 other people monitoring. Having 3 people is not very efficient, being set up by 3 different groups and billed 3 different ways. This company has formed a partnership with the spine surgeon in order to integrate the 3 parties into a unified billing, and they split the revenue with the surgeon. There hasn’t been a lot of history on this, but there has been phenomenal growth. They’ve been focusing in Colorado and have hired some sales people in order to expand out into other states around Colorado. It is fairly early, but it is one to watch.

Bruce Campbell (2)
President & Portfolio Manager, Stone Castle Investment Management Inc.
Price
$3.160
Owned
Unknown