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This business is interesting, especially if you look at 2 data points. One is the number of rigs that are working in the US, and 2 is the price of oil. They’ve been trying to consolidate a fairly fragmented business in the US. US energy companies are looking for service companies that are bigger and can operate in more territory, not necessarily mom-and-pop operations. The new management comes from big oil companies and have relationships. He expects the numbers, when they report, will be fairly good.
Just reported, and numbers were a little softer than what the street expected. Their numbers can be a little lumpy from quarter to quarter, and they trade at a fairly high multiple. When that happens, it is not surprising to see the stock fall off. Longer-term, this is a fantastic business. They are real innovators. A difficult business, because they have to be constantly innovating. They’ve done a really good job in making acquisitions.
A really interesting company. Had an announcement out today about their brands starting to gain traction. Expects this means that in the next quarter or 2, you are probably going to see a ramp up in earnings. This company has specialty organic brands. They’ve been basically buying the brands and integrating them into their distribution network. What he would like to see in order to take the stock from the level it's been, to a significantly higher level, it is for them to translate revenue to the bottom line, so that we would see a higher earnings number. We are probably not going to see that, but when it does happen, the stock should really take a jump. At that point in time, they would probably get taken out.
Just reported and it looks like they beat the numbers the market had been anticipating. Expects the stock price to move higher tomorrow. On a longer-term basis, a lot of this has to do with the oil/gas market, as they do a lot of pipes. The dividend has fairly good coverage, so feels it is fairly safe with some possible growth.
Missed their earnings, so the market took it down significantly. It could have been oversold on the short term. Typically, with these types of scenarios, he usually gives it 3 days, and then looks at it. If he didn't own this and wanted to add, he would probably do it in thirds. One 3rd in a couple of days, another 3rd in probably a couple of weeks, and a final 3rd in about 2 months.
Just announced they were going to be splitting the company. He's been waiting for this for some time. It was probably about a year ago they said they were going to be splitting the company into 2 pieces. They’ve been working with CRA to get everything figured out. They are going to have a shareholders meeting and it is going to be voted on. He is surprised this is trading where it is, but it was probably a function of legacy issues, and is now probably a function of tax loss selling.
This has amassed a huge amount of single-family homes at fairly attractive prices in a lot of cases. A criticism has always been as to what they going to do with all the homes and where will they eventually sell them. Recently they sold a bunch, but he still questions how do they get rid of all them.
Switch bank stocks to this company? This is going to be a little more volatile than the banks. It has been a great, long term stock. Every time there is a natural disaster, everyone is worried about what is going to happen, and they just increase their premiums, and make more money the following year.
Has a monitoring software that ties into a number of different hardware units. For someone sent home from the hospital, it has the ability to monitor from the home. They have an Alexa type, voice activated monitoring system to remind them to follow procedures. This data is transmitted back to the healthcare team or the family in real time, so they know how your health is doing all the time. It’s supposed to cut down on readmissions. As opposed to selling units to every individual, the company has gone to the health authorities and they basically sell on a long-term contract. Have targeted the US to start with. They are in the process where they are starting to ramp up and hope to be cash flow positive in early 2018. Has a $55 million market cap right now, so there is tons of room to run.
In asset tracking. Started off with Bluetooth tracking where they would attach the device to something, and via Bluetooth, it would tell you where your asset was. Now they’ve moved into Low Power Wide Area Network, so basically a cellular chip, like a Sim card, which you are going to plug in. This expands the whole territory of where it can be monitored and where it can be monitored from. Cellular companies in the US are super excited about this, because everyone has cell phones. They can basically add a lot of new subscribers by basically charging $3, $4, $5 a month to track a shipping container, jackhammer, etc. They've signed deals with Bell and Wall Way out of the US, and are testing now with the big US carriers. This is just the start of where they are going to start ramping up.
The only public company in this space in Canada, so they've been consolidating a fairly fragmented business. Have been growing organically and by acquisition. Did a big deal in May, and then financed this summer, and the stock has been sort of treading water since. You are probably going to see earnings ramping up, as they have integrated that acquisition and increased some of their revenue. It’s becoming more difficult to put these big storage units into places and, as a result they can charge higher and higher rates. Dividend yield of 0.5%. (Analysts' price target is $3.08.)
(A Top Pick Nov 16/16. Down 71%.) A few things happened. Have had 2 reimbursement cuts. Hasn’t affecting earnings yet, but it will. It’s been an acquisition story and they’ve been buying anaesthesiology clinics using their stock as currency. That becomes difficult now because of the low stock price.