COMMENT

It's the U.S. vs. world markets. The U.S. is still up 8% YTD while the TSX is down 0.5% YTD. It's frustrating for Canadian investors. Financials and energy make up half the TSX, so can those sectors carry the TSX? Probably not. Tech and healthcare make up only 15%.

PARTIAL BUY

Two years ago, Alaris had two problem investments. Pays an 8% dividend. AD is turning things around with a few more investments, and they have reset their royalty rates. Things are definitely looking better. A 98% payout ratio, but that will be threatened if there's another problem investment. Cheap now. Give it one more quarter to see if things continue to do well, but you can pick away at it now.

COMMENT

A high-risk company in an interesting space. Healthcare providers and governments want to keep people out of hospitals, so Reliq benefits. Reliq's technology can monitor people recovering from home. They're signing contracts in Texas. They target $26 million annual recurring revenue. They've had a few product missteps, so they need to deliver that $26 million target. They're also in the process of signing contracts in Canada and Australia. This could be a big business one day, but there's a lot of risk here.

BUY

They've done very well with a new CEO following a legal fight with a subsidiary a few years ago. A good growth play on semiconductors. Has a good balance sheet and growth potential by branching into other semicondutor components. Keep a 3-year time frame on this and expect some volatility.

DON'T BUY

Shares have done well. They depend long-term contracts wth Air Canada, and these contracts support their heavy debt. But what happens if things go wrong with Air Canada, given all this debt? He's on the sidelines here.

WAIT

Slashed their sales growth forecast today. He likes it, but high-valuation companies like this get hit if they slip in a report. They have a long runways in organic growth just through price increases over time. It could drift a bit lower, so wait a bit, but it's fine to have long term. A shareholder-friendly company that regularly buys back shares.

BUY ON WEAKNESS

Likes it and has owned it for a long time. They do beef jerky and other specialty foods. They buy smaller companies. Strong management. It will drift from time to time, like now. High valuation name. Be patient with this. Growth by
acquisition. They buyback shares and increase dividends. Good to own. Buy on this pullback.

BUY

It has done well. Likes it. It buys smaller companies. They deal with customs and borders for customers who don't want to deal with that hassle. It has a steady growth rate in recurring revenues.

DON'T BUY

Income royalty names have suffered from interest rate hike fears. He prefers other royalty companies. He'd like to see more Pizza Pizza stores and same store growth. Pays a 9% dividend. Prefers A&W who are growing their footprint in
Canada. People will always want pizza though.

DON'T BUY

He doesn't follow this closely, because it's a pre-revenue company that isn't generating positive cash flow yet, so it's too early for him to consider. It's in the drone delivery space, an interesting space. The big problem is that he doesn't know the future of drone delivery or if this company can execute. He would wait before looking at it.

DON'T BUY

Spin-off announced today. Markets didn't like their big US acquisition, so they are spinning off Canadian assets. The spin-off is the right strategic move, but it doesn't interest him to buy the stock. They're making up for past mistakes.

BUY

A de-caffeinated coffee company which is growing faster than the caffeinated coffee market. Driven by health trends. Over the last years they've been building a new production facility which will open up their capacity, so the company will grow. They're gaining market share and launching a sales force in Europe. They're setting themselves up for growth. Cheap shares, nice 4% yield. May have to be patient until the facility opens in Q3 2019.

PAST TOP PICK

(Past Top Pick, Nov. 14, 2017, Up 14%) An asset management company that moves with the markets. Pays a 6% dividend plus a special annual one, totalling 7%. GS can do nothing year to year, and you'll still pocket that yield.

PAST TOP PICK

(Past Top Pick, Nov. 14, 2017, Up 36%) Taken out by Motorola. Bittersweet for him. They were beating market expectations with new products that looked like they had traction. But it's another case of a great Canadian company bought out. Good results, but sad to see it go.

PAST TOP PICK

(Past Top Pick, Nov. 14, 2017, Up 34%) One of the strongest tech companies in Canada. They do logistics and machine learning. They "land and expand" by landing a client, then grow the contract value as the client becomes used to their services. They have global customers including Toyota. Valuation is high because it's a high-growth company. Still likes it.