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COMMENT
Market Outlook He is optimistic about the Canadian market. If you look at last year's 10% TSX drop, historically the subsequent market goes up 12% -- good 90% of the time, he says. Canada is very washed out in the energy and financial sectors. Multiples on banks have come down a lot, which should bode well for them. He does not think we are headed to a recession, relative to earnings growth. If we can see some stability, we can see some catch up on values. Small caps got hurt hard last year and he thinks that means a healthy rebound in this space.
Unknown
DON'T BUY
It has been a disaster since the IPO. He passed on it after meeting the management team as he thinks the business will have a hard time to hit their target. Margins are tight and operations are challenging. It is hard invest when management does not have a handle on the operations of their business. He would stay away.
food services
BUY
He likes this large tech company. It has been a slower grower, but they have put in some good earnings -- especially in Europe. He thinks they may introduce a dividend, when they report Q4 results soon. The stock trades at 17 times earnings and it has good growth prospects. He respects the management team.
consulting
HOLD
He has a half position in this. He likes it and it is back to his entry level around $0.50. They have a good growth profile. They needed to tighten their balance sheet and they were successful in securing some further financing in a brokered deal -- they will need some working capital. He will continue to hold.
communications / media
BUY
He has known the management team since they went public. The two founders own 64% of the company. They came out good earnings and showed a record backlog of orders. They are the leader in their space -- upgrading broadcasting companies. They have one of the largest market shares in the space and are expanding in North America. They pay a nice 4.5% dividend.
electrical / electronic
HOLD
It looked like it was going to be taken over, but it did not go forward -- which may have been the driver to the sell off last year. He owns it still and likes how it held up during the market sell off. A good defensive play with a good yield. They have holdings in Texas, where there are lots of growth opportunities. He still likes the management team. Yield 6%.
REAL ESTATE
HOLD
It looks interesting, but is too small for his funds. It has under-performed for the past few years. They are in the right place at the right time, but we need to see some good drill results soon.
Mining