STOCKCHASE

(A Top Pick June 15/11. Up 16.52%.) Sold his holdings at $10.50 and he is now Short a little bit now. May have to cut their dividends.

2012-05-11

HOLD

10.500

Very stable business and feels the dividend is secure. Regulated by the Ontario Ministry of Health saw has a very stable cash flow stream. About 90% payout ratio. Growth opportunities are limited so doesn't expect a ton of growth. 7.1% yield.

2012-04-04

PAST TOP PICK

10.810

(Top Pick Jun 15/11, Up 16.06%) Just sold it recently. The things that they thought would happen have happened. Thinks they can maintain the dividend but not sure if they can increase it.

2012-03-12

TOP PICK

10.600

Charles Lannon

Laboratory testing and medical imaging. Took a lot of risk out of their business by getting rid of their US assets. Attractive yield.

2012-02-02

TOP PICK

10.440

Karl Berger

Lab testing and medical imaging. Nice demographics in the healthcare space as the population ages. Sold their US holdings. Solid dividend yield, which they can grow fairly dramatically over the next little while. 7% plus yield.

2012-01-20

WAIT

10.200

Andrew Hamlin

Recession-proof business. Lab testing, ultra sound. One of its growth strategies was to enter the US, which they have now sold. Be cautious. Canadian operations are doing ok but the company recently resigned a funding agreement with the ministry of health and it is more stringent this time. Management might have a tough time maintaining margins. Payout ratio is about 90%. CEO seat has been vacant for about 7 months. It is hard to know the growth strategy going forward and you should wait until that is straightened out.

2012-01-11

HOLD

10.030

Douglas Kee

Dividend of about 7.5%, which he thinks is safe. Well-managed. Expansion into the US was slower than the company expected.

2011-11-07

PAST TOP PICK

9.850

(A Top Pick June 15/11. Up 5.32%.) Dividend is running around 8%-8.5%. A big risk was the Ontario government going through a healthcare review, which turned out favourably. Some assets in the US, which was a mistake.

2011-11-02

DON'T BUY

9.540

James Hodgins

Has disappointed quite a bit in the last 2 years. He is always hesitant when you start to see deterioration in fundamentals and detailed ratio starts to get tight. He is currently short this one.

2011-10-20

WATCH

8.970

Quite a bit of uncertainty. Needs to resolve, 1.negotiating a new labratory cap agreement with Ont. Gov. 2. Need a CEO. 3. Their US business, (dependent on the CEO).

2011-10-06

TOP PICK

8.980

Medical testing labs. Expansion into the US has been a disaster and CEO and COO were let go. The Cdn business works fine and generates a lot of cash flow. Expect the US assets to be sold. Expect a new permanent CEO by November. Trading at about 10-12 years historic lows at about 8.2X cash flow. Will be paying $0.75 dividend for the rest of 2011.

2011-09-15

BUY

8.400

Has been in the penalty box for the better part of a year because of an acquisition of US laboratory properties that has gone bad. You are basically getting the Canadian business at a discount price. (US assets are not worth anything.)

2011-09-07

BUY

8.180

Doesn’t think the problems in the US are entirely fixed, but are stabilized to a great extent. 2nd quarter showed Canadian results. Chart reflects the change from high payout trust to low payout corp. There are some problems in US operations. There have been management changes and so some uncertainty for some period of time. They are on a better tact right now. Will re-negotiate lab contracts in Ontario. 9% yield. Even if it came off a little, which it could because of their earnings power it is still attractive.

2011-08-23

BUY

9.150

Have not bought it because of other opportunities. Tremendous lab business in Canada that provides good, solid cash flow. More than more of the lab work will be outsourced to companies like this.

2011-07-26

TOP PICK

9.580

Medical diagnostic labs. About 8% yield and feels this is secure for the time being. Risks would include government intervention. With the aging population, they will have more and more tests.

2011-06-15

BUY

9.310

Liked their business model when they were a trust Lab business in Ontario has been pretty much of a cash cow. Have stumbled a bit in radiology services in the US. Also some question on management. Under $10 it has started showing up on his radar screen and he would be very tempted. Looking at adding to his holdings.

2011-05-17

HOLD

9.090

Medical testing. Very solid business but the government pays for most of the tests and they can squeeze the labs pretty hard in a recession. So far they haven’t this time, but it is possible as we go through the next stages. If he owned, he might sit it out.

2011-05-16

DON'T BUY

9.700

Sold 18 months ago. Didn’t know it was going to be as bad as it got. Lab business in Canada is fine but US arm not. Fired management and now have new management. Dividend is not necessarily safe. Avoid this one.

2011-05-10

HOLD

10.080

Have had some challenges over the past several quarters particularly in their US business. They made an acquisition about 3 years ago. Took a 2nd $50 million dollar write down on it last year. Small part of their business and not affecting their EBITDA but is making headline news. Cdn business remains very stable. A yield play at 7.5%.

2011-04-08

BUY

12.010

Will be converting and their dividend will probably be adjusted to reflect their new taxable entity. Good, well managed company. Lab business is very steady. With the current health care, more business will be sourced to companies like this. Good steady investment for yield.

2010-12-01

BUY

11.220

(Market Call Minute.) Very well run. Very solid cash flows through their lab businesses.

2010-09-22

BUY

11.230

Lab and Imaging business. Made a US acquisition about 2 years ago that hasn’t worked out. Q1 had poor results due to economy and a harsh winter. 2nd quarter was a turnaround with margins up to 11%. Will convert to a corp and have set their dividend to $0.75.

2010-09-10

BUY

10.400

Was ideally suited to be in the income trust model. Labs give a predictable cash flow. They did have some problems in radiology in the States. Second quarter was a little bit of a disappointment. Thinks distribution will be tax adjusted after conversion. A good long-term stock to own.

2010-08-25

PAST TOP PICK

10.630

Jamie Horvat

(A Top Pick Sept 16/09. Down 10.97%.) Recently added to his position because of dividend yield and for downside protection.

2010-08-16

Comment

10.170

Run a series of testing labs. Sold his holdings because he didn't like its reliance on government fiats.

2010-08-12

BUY

9.650

Has been waiting for this one to get to $10, which is a compelling valuation. Can earn in the neighbourhood of $1.20 in the next couple of years. 11.2% yield

2010-07-28

BUY

9.850

Peter Hodson

Great little company for income. Good distribution and are an oligopoly in Ontario. However expanded outside of Ontario, which didn't go as well. If you're worried about the economy, lab-testing business is about as rock solid as you can get.

2010-07-22

DON'T BUY

9.850

Barry Schwartz

Acquisition in the US didn’t work out. Payout ratio is way too high and they will have to cut the dividend dramatically when they convert to a corp. Will look at it more carefully tomorrow.

2010-07-20

DON'T BUY

9.950

Bill Carrigan

Chart shows a fall during 2010. What the market is saying that the 10.7% distribution might be in jeopardy.

2010-07-16

HOLD

9.930

A little distress currently because of negotiations with radiologists in their US operations. Distribution will be a little less when they convert. Lab operations are steady with consistent cash flow.

2010-06-30

WATCH

10.020

Ara Nalbandian

Bulk of business is in Canadian laboratory testing, which is a very stable cash flow. US diagnostic business has been more challenging and he sees some risks there of operational improvements and has sent over senior management teams to alleviate it. Trading at a premium multiple and will have a cut when they convert to a Corp.

2010-06-23

BUY

9.940

Been under a fair amount of pressure primarily due to their US activities. In Canada they will possibly be affected by the HST. Distribution likely to be cut to $0.60 cents or so when they convert to a corporation. The lab business is a steady generator of cash flow. This one was always a good model for an income trust. Feels in the future more and more will be outsourced in healthcare. He thinks it is attractive at $10

2010-06-02

DON'T BUY

9.940

Douglas Kee

Was quite surprised how it has done. Problems was first quarter lower than analysts expected and second was proposed changes in healthcare regime that is proposed in the budget. Likely will be limited to 1% increase in what they can increase charges. 30-40% cut in distribution predicted.

2010-06-02

DON'T BUY

10.250

Don Vialoux

Trend distinctly on the downside without support. There is a tendency for the sector to bottom at this time of year. You don’t want to invest until you see signs it has bottomed.

2010-05-31

TOP PICK

10.670

(A Top Pick March 25/09. Down 22% excluding distributions.) Medical laboratories. US holdings pulled them down. Won't have restructuring costs going forward.

2010-05-13

DON'T BUY

10.440

Ben Cheng

This trust was used as a platform to expand into the US, which has been a little problematic for them. Also the move of the Cdn$ back towards par is putting pressure on them.

2010-05-12

SELL

11.380

A terrific trust with a good yield. Large percentage of revenue is from government, particularly Ontario government. He would worry about lab tests getting squeezed by the government. If you own, consider getting out of it for a while.

2010-04-22

WATCH

11.880

US side had a couple of poor quarters and would have to grow so they wouldn't have to cut distributions. That is now changed and now looks that they are going to have to cut, possibly 1st week in May. Recently exited but would reconsider purchasing if it went down enough.

2010-04-19

Comment

11.720

Sold his holdings about 2 years ago, as he hates stocks whose fortunes are dependent on the stroke of a government pen. Thinks the current weakness is somewhat related to the drop in Shoppers Drug (SC-T).

2010-04-15

HOLD

12.520

Yield of about 8% and could go down to 5%-6% when they convert. This one is on his radar screen. Cash flow from laboratory is relatively stable. Longer term, it is a good company to own.

2010-03-17

BUY

12.300

Steven Conville

Good defensive play. Dividend is solid because a large percentage of its clients are Ontario, Alberta and Canadian governments. Shouldn't get hurt by buying at this price. If it gets close to $15.75 you should consider exiting.

2010-03-15

Comment

13.460

Operates medical laboratories. Amount of medical testing is increasing steadily as people age. However Ontario government has an agreement on a global cap so, rather than getting more because of more tests, it decreases margins. This hurt them in the last quarter. Still think it's reasonable in the long haul

2010-03-08

WEAK BUY

13.460

Colin Stewart

Reported weaker earnings. He is still looking at it. It’s a good long-term business. Could be an opportunity.

2010-03-05

BUY

13.300

Canadian lab business with some smaller US tuck-ins and they are working out to show some growth. Safe place to be in the market with a 7.5% dividend.

2010-01-29

DON'T BUY

13.190

Colin Stewart

(Market Call Minute.) Very high quality lab diagnostic testing business. Very stable cash flow but there is a risk they will have to cut their distribution when they convert back to a corporation.

2010-01-28

PAST TOP PICK

13.550

Jamie Horvat

(A Top Pick Sept 16/09. Up 5.83%.) Still a buy.

2009-12-16

PAST TOP PICK

13.420

(A Top Pick Jan 22/09. Up 13.22%.) Still a buy. 3 years from now this will be a great dividend paying stock. There will be a distribution cut between now and then.

2009-12-14

PAST TOP PICK

13.740

(A Top Pick Dec 5/08. Up 12.7%.) Has a little bit of lid on it because of exposure to US healthcare but this impact should be very modest. Will have to cut their distribution when they convert to a corporation. Still likes.

2009-11-25

Comment

13.750

Trimmed holdings but still keeping it in income accounts. 7.79% distribution should be safe. Medical tests will grow with aging population but government has put a cap on the amount they will pay. Good income but moderate growth.

2009-11-11

Comment

13.660

Rick Stuchberry

This one is okay but remember they have to convert from a trust to a corporation so the distribution will be cut.

2009-10-09

HOLD

13.560

Jim Huang

(Market Call Minute.) Good, steady, long-term cash flow. Pays a good dividend but not much upside.

2009-10-02

TOP PICK

13.010

Jamie Horvat

One of the largest lab companies with 30% of the Canadian market share. H1N1 testing could boost margins in the short term. Also has about 10% share in the imaging side. Defensive holding as he believes there is a potential for the market setting up for a double dip. Conservative management team.

2009-09-16

TOP PICK

12.990

(A Top Pick Oct 2/08. Flat.) Did not participate in the rally primarily because of a US acquisition they made 1.5 years ago but the margins of this were up 15% and thinks it will provide a very good platform. Clean balance sheet.

2009-09-11

PAST TOP PICK

12.930

Steven Conville

(Top Pick Jul 23/08 Up 0.25%) We are in a position where we are about to lose a lot of money, 7% dividend.

2009-08-17

STRONG BUY

12.930

Prices come under a little pressure over concerns on the US healthcare reforms and how it will affect their assets in the US. Majority of their business is lab offices in Canada. Very stable with a good growth profile. Imaging business in Ontario is also very strong.

2009-07-17

BUY on WEAKNESS

13.070

Currently the market is a little concerned about Obama's healthcare plan and the reimbursement rate for some imaging procedures but this is not a large part of their business. Have about 30% of the lab business in Ontario and continue to see growth here. Also acquiring small imaging clinics in other provinces. Could be a distribution cut as we get closer to 2011.

2009-07-06

BUY

12.700

Very well structured income trust. In a market that is pretty reliable. Expect there will be more and more outsourcing of services by governments. Have a dominant position in labs in many provinces. Steady distribution at 8.4%. This is a yield vehicle so don't look for much capital expansion.

2009-06-26

PAST TOP PICK

13.340

(A Top Pick Oct 2/08. No change.) Very defensive. Medical diagnostics and lab tests in Ontario. Great stability in earnings and good management team. Low pay out ratio.

2009-05-22

PAST TOP PICK

13.200

(A Top Pick Oct 2/08. Down 4.3%.)

2009-04-02

TOP PICK

13.420

Big in medical imaging and lab testing, a very stable, defensive area. Have also expanded into the US, which will give some growth. Conservatively run. Distribution is safe.

2009-03-25

TOP PICK

12.550

(A Top Pick Nov 28/07. Down 16.2%.) Laboratory diagnostics, one of 3 in Ontario. Regulated and new contracts have been signed giving good 3-year visibility. Also have medical imaging with both Canadian and US components. Clean balance sheet and very conservative management. 8.5% yield should be safe with their 80% payout ratio.

2009-02-03

TOP PICK

12.790

Lab testing. This trust has held him like a rock all through the bear market. Very predictable income stream.

2009-01-22

Comment

12.840

Medical lab testing, diagnostic and imaging. Recently made a US acquisition as a platform to expand in northern US. Very defensive. 8% distribution is very solid.

2009-01-16

BUY

12.740

Gavin Graham

Medical lab testing. A great play on demographics. Also growing in the US. Structured as an income trust so that in less than 2 years, the structure will change but you will continue to get dividends put you in the same position as you are now.

2009-01-14

TOP PICK

12.820

Jean-Francois Tardif

Medical Lab testing. 40% market share in Ontario. Trades at around 11X free cash flow so not super cheap, but still respectable. This preserves capital and gives a distribution of around 8%.

2009-01-13

TOP PICK

13.140

Laboratory services business in Ontario is very stable and government-funded. They also have a medical imaging business both in Canada and the US. Very conservatively run. Payout ratio is in the low 80% level. Conservative debt.

2008-12-05

Comment

12.630

Jean-Francois Tardif

Main business is lab testing in Ontario. Every year Ontario government pays them and every 2 or 3 years they revise the amount up. Very safe business. Recession proof. Great history of profits. Well-managed. Getting close to 10%-11% free cash flow yield. (Looking at this one.) Could get 10% cheaper but getting close to rock bottom.

2008-10-17

TOP PICK

13.800

Very stable business, growth is from imaging side of business. Good growth opportunities. Should convert into high dividend paying corp in 2011.

2008-10-02

TOP PICK

14.070

Steven Conville

Because we are in a bear market, it is important to be cautious. Nice steady distribution. 30% to 40% of their contracts are government ones. Pretty well insulated from a slowdown in the Canadian economy, so a good defensive play.

2008-07-23

TOP PICK

15.200

Labs and imaging business. Made an acquisition in the US and reported a 1st-quarter including this. Numbers were good. Did an issue to pay for it afterwards and it has been weak ever since even though the numbers were good. Have the ability to pay the dividend when they are taxable in 2011.

2008-05-09

BUY

15.230

Dominant market is Ontario, which has no capacity to bring on new labs. Changing into a corporation in 2011 does not change them into a growth company, so they will stay as a trust. Good company.

2008-05-05

BUY

15.650

Like, a very good model for an income trust. The threat is that the government will try to renegotiate and squeeze down margins. Current yield in quite good. Not a lot of risk.

2008-03-27

BUY

15.650

Made a US acquisition last year. Likes this trust a lot. Have increased their debt a little, but it's a stable business.

2008-01-22

BUY

16.990

Have about 1/3 of the lab services in Ontario. Trying to aggressively grow into the imaging business. Also making some moves into the US. Very good management team. Good growth company.

2007-12-27

TOP PICK

16.270

A leading provider of laboratory testing services in Ontario as well as non-hospital medical imaging services across Canada. Very predictable in terms of growth and margins. Very lean operating style. Good management. Acquired 9 imaging services in 2007 and will be closing 8 more giving good growth opportunities. Not cheap, but very defensive. 6.5% yield.

2007-11-28

BUY

16.000

Great defensive business.

2007-11-08

BUY

15.860

Likes this company. An excellent business model for a trust. A dominant lab resource for the healthcare system. 6.6% yield.

2007-08-31

DON'T BUY

16.470

Chris Rankin, MBA, CFA

Very good quality asset. Trades at a pretty substantial premium to its overall assets. There are others at a lower price.

2007-07-13

HOLD

16.470

Likes the lab business they are in. Gets hit from time to time when people are concerned about government cutbacks. Longer term, a good business to be in.

2007-07-13

Comment

15.330

Very good, slow grow, steady business. Very conservative in their calculation of distributable cash.

2007-06-27

PAST TOP PICK

15.870

James Cole, BA, CFA

From May31 2006Then $14.63Still holding, would have done better if the tax law hadn't changed.Still expects a total return of low double digits over next 4 or 5 years, even if you bought now.

2007-06-12

HOLD

15.800

Ben Cheng

Involved in the diagnostic side of healthcare, especially in southern Ontario. Very slow growth business. Not a bad business, but the growth prospects are not that attractive.

2007-05-29

BUY

14.750

Medical labs. Regulated in Ontario. Good holdings.

2007-04-13

BUY

14.280

An infrastructure play. They roughly manage one third testing in Ontario, and increasingly are getting into the medical imaging business across Canada. Looking for good growth.

2007-04-09

BUY

15.000

Company looks at themselves as more of a growth vehicle than and income trust. This is a good entry point.

2007-03-21

DON'T BUY

14.220

Chris Rankin, MBA, CFA

Very high quality business. Rock solid revenues and profitability. Trading at a premium to what he would consider comparables. He can find other laboratory businesses in the US with much higher growth rates for lower prices.

2007-02-09

HOLD

14.100

Provides lab and imaging services. Demographics work in their favour. Government guarantees them a share of the market, so it is a very steady business. Conservative payout structure.

2007-02-08

BUY

15.610

Patrick Kim

Involved in lab services, blood test work and diagnostic imaging. Good choice for investors looking for stability. A non-cyclical play on the economy.

2007-01-26

BUY

13.600

Likes the company, but hasn't picked a price where he would buy it. Has about a 7% yield. Good model for a trust. Primarily in the lab business, which is pretty steady and it is the main private player in Ontario. One problem is that the government sets the rates for tests. About 20% of their business is imaging and this could be spun off, which would give a bit of a bonus to the stock.

2007-01-05

BUY

13.950

The 2 business trusts that he likes, and has recently been buying, are CML Healthcare (CLC.UN-T) and Parkland Industries (PKI.UN-T).

2006-12-29

BUY

13.810