He would avoid this. As a value investor, there is a tendency to see a lot of underlying asset value. However, we’ve recently seen trends in online retailing accelerating and department stores becoming more and more challenged. Even though there is this theoretical asset value in the real estate, if the underlying retail valuations are not strong enough to pay the rent and support it over time, it is going to be hard for the company to surface that.

There is nothing comparable to this in the market, which is one reason he likes it. An organic foods business. They’ve done a great job of acquiring and building brands, and getting great shelf space in some of the grocery stores such as Walmart and Loblaw's. Trading at a pretty significant discount on Price to Sales to their US comparables, and there is nothing comparable in the Canadian market. A unique way for Canadian investor to get exposure to the ongoing growth of organic consumption by consumers.

He doesn't have an overall positive view on Canadian financials, and would prefer US financials. This bank had an issue recently with a fairly large write down. When banks have issues like this, it’s unclear as to how long it is going to take to resolve.

On the surface it looks like a business with very high barriers to entry, with licenses giving them almost monopoly positions. Also, it’s a capital-intensive business, where they put a lot of money into large ships, recouping it through cash flow earned by harvesting seafood. Historically, they’ve generated high returns on capital, and they’ve been good investments, but in certain periods it leads to a lot of spending, negative free cash flow, quarter to quarter volatility. As a value investor, he likes to see a nice steady cash flow stream. With this one, you have to take a very long-term view. If you can do that, it is a pretty good business.

On the surface it looks like a business with very high barriers to entry, with licenses giving them almost monopoly positions. Also, it’s a capital-intensive business, where they put a lot of money into large ships, recouping it through cash flow earned by harvesting seafood. Historically, they’ve generated high returns on capital, and they’ve been good investments, but in certain periods it leads to a lot of spending, negative free cash flow, quarter to quarter volatility. As a value investor, he likes to see a nice steady cash flow stream. With this one, you have to take a very long-term view. If you can do that, it is a pretty good business.

A fairly controversial stock in Canada right now. Down 18% YTD. Has a fairly dominant position in the movie business, but this is an industry that is going through a lot of change. People are concerned about a variety of factors such as home viewing of movies, a shorter release cycle, etc. It is somewhat unique compared to the global or US theatre exhibition companies, in that they have a very strong market share in Canada and an attractive dividend yield. They have more advertising in the business and are diversifying with things like Rec Room. With the recent selloff, it is starting to look pretty attractive and he’s taken a very small initial position. Dividend yield of 5.6%.

This is in the category of "too tough to figure out". There are so many moving parts. The business is in a de-leveraging state where they are trying to sell off assets from years of the acquisition binge to pay down debt. The new CEO has been pretty aggressive in selling off assets, trying to raise cash. It still has a lot of financial leverage, and is very hard to analyse. There are better ways to make money.