STOCKCHASE

A Comment -- General Comments From an Expert

16.780

(A Top Pick March 15/11. Down 71.41%.) Got stopped out.

2012-02-03

PAST TOP PICK

Yamana Gold Inc.

YRI-T

17.050

(A Top Pick March 15/11. Up 50.36%.)

2012-02-03

Comment

A Commentary

0.020

Markets. The S&P 500 for the last 10 years shows the last 5 a little more encouraging but the market seems to be overbought in the near-term. PE multiples are reasonable and he is optimistic the economy globally is improving. Feels that economic growth is going to be pretty good for the coming 1.5 years.

2012-02-03

BUY

First Majestic Silver

FR-T

19.890

Pure silver mined in Mexico. Ranks well in his models. Expected to end up having decent earnings. Sales were up 59% year-over-year. ROE is about 30%.

2012-02-03

DON'T BUY

Eastern Platinum Ltd.

ELR-T

0.550

Gold, as a metal, has turned back up and this should drag along platinum. Overall earnings are declining about 20% year-over-year. Actual earnings growth is pretty modest at 8% for 2012. Prefers others.

2012-02-03

TOP PICK

Miranda Technologies Inc.

MT-T

10.640

Big benefit with the Olympics and the US election. Very strong 13% free cash flow yield. Potential acquisition. Dirt cheap.

2012-02-03

WATCH

Great Western Minerals Group

0.095

Selective asset management technology is very good. They have a USB stick ($25 monthly) which allows you totally secure access via Internet anywhere globally. Used by the US military. Wait to see if they get increased sales.

2012-02-03

BUY

Western Wind Energy

WND-X

1.950

US wind company. Have been able to get a 30% tax credit from the US government which dramatically improves the economics. Expecting the systems to fully generate and produce visible earnings and cash flow in the 1st and 2nd quarters this year. Could be a takeover candidate.

2012-02-03

Comment

Fortress Paper

FTP-T

37.300

New plant they are buying and converting looks quite interesting. PE on a trailing basis is about 10X. ROE is interesting at about 20%. His Quant system does not rate it well because near-term earnings are declining dramatically. Was $.38 last year and the most recent quarter in November was minus $.51. If they can get it together, growth rate in earnings should be pretty good.

2012-02-03

HOLD

Ithaca Energy Inc.

IAE-T

2.890

Company is expected to have decent earnings growth in future. Bringing on new fields in the North Sea and the UK. This would be of interest to about 5 potential buyers so he would continue to hold. Trading at about 8X PE.

2012-02-03

Comment

Poynt Corp

PYN-X

0.145

Holds patents on location-based mobile advertising. Expanding but unfortunately they are losing money. Expected breakeven in about 18 months but there are some new IPOs coming. Valuations are heating up in their space. Very speculative.

2012-02-03

TOP PICK

GWG-X

0.680

More speculative. 3 pieces to creating value in rare earth. 1) 20% comes from digging it out of the ground. Reactivating a mine in South Africa and to have it into production in the 2nd half of 2013. 2) 40% is created by being able to separate rare earth minerals they have signed a deal with GCD, the only Chinese separation company.

2012-02-03

DON'T BUY

Axia NetMedia

AXX-T

1.070

Earnings estimates were $0.04 in June and $0.08 in June/11 but June/12 is forecasted to decline to $0.02. Have about $34 million in cash on the balance sheet. 42X PE in 2012. Cheap and is producing a 4th quarter trailing cash flow yield of 4%. Not sure they can be profitable.

2011-08-26

PAST TOP PICK

Canadian Imperial Bank of Commerce

CM-T

71.200

(A Top Pick Sept 10/10. Up 0.81%.) Outlook for Canadian banks is good on a relative basis with attractive yields but doesn't see much opportunity for increased dividends or earnings growth.

2011-08-26

Comment

Electrovaya Inc.

EFL-T

1.350

Manufactures lithium ion polymer batteries in an environmentally friendly way. Currently testing with a couple of auto manufacturers. The question is, will they be able to roll out tons of batteries and create lots of sales. Expected to earn $.02 in 2012.

2011-08-26

DON'T BUY

Enghouse Systems

ESL-T

8.770

Has typically grown through acquisition. Only covered by one analyst. Earnings estimates are for $.68 in 2012 compared to $.56 2010 so it is reasonable growth. Relatively illiquid. Doesn't rank well in his quant model.

2011-08-26

DON'T BUY

Husky Energy

HSE-T

23.770

In the top 25% of his growth database. Price to cash flow estimates for 2011 is 4.4 X, which is in line with the industry. Cash flow growth significant at 73%. Able to maintain the dividend. Prefers smaller, medium-size companies that have better opportunities to grow earnings and cash flows.

2011-08-26

PAST TOP PICK

Pason Systems Inc.

PSI-T

12.530

(A Top Pick Sept 10/10. Up 7.54%.) Sold his holdings about 3 months ago.

2011-08-26

DON'T BUY

Royal Bank

RY-T

48.980

Ranks 140 in his models. Earnings for their core business was down about 8%. Loan growth has been week. All banks will be challenged between now and the end of the year.

2011-08-26

PAST TOP PICK

Saputo Inc.

SAP-T

38.930

(A Top Pick Sept 10/10. Up 14.87%.) Sold his holdings earlier in the year because he felt there were better opportunities at that time.

2011-08-26

HOLD

SXC Health Solutions Corp.

SXC-T

50.530

Not cheap compared to its US competitors but they have a very good product, which is totally transparent large corporations and insurance groups helping them to see what their drug costs are. Year-over-year sales growth is up 132%.

2011-08-26

Comment

Sino-Forest Corp

TRE-T

4.810

Sold his positions at about $4.50. Trading has just been suspended by the OSC because of a lack of transparency. Have a lot of cash on the books but also a significant amount of debt.

2011-08-26

TOP PICK

6.900

Patent portfolio company. Offering $38 a share for Mosaid (MSD-T). These 2 would include 4G wireless patents plus Mosaid’s Dram patents making it a very powerful combination. There is an option in the US expected by Labour day, which should give powerful insights into the value of patents giving good visibility to this company.

2011-08-26

Comment

A Comment -- General Comments From an Expert

3.500

Semiconductors. In the process of a turnaround. Will do well. There is a hostile bid by Microsemi (MSCC-Q). Cash flow is positive.

2011-08-26

DON'T BUY

TSO3 Inc

TOS-T

1.670

Manufactures products for sterilization. Laurentian Bank (LB-T) has a target of $3. Recently submitted documentation to the FDA for clearance of their product and this will take 9-12 months. Dec/10 they lost $.14 and are expected to do the same this year and $.05 next year. Too expensive for him.

2011-08-26

Comment

A Commentary

0.020

Markets. Convinced there will not be a double dip recession and 2nd half of the year will show reasonable growth and earnings with a reasonable pick up in the economy. Forecasting 9% for China's GDP and expecting very good growth in developing economies.

2011-08-26

TOP PICK

Neo Material Technologies Inc.

NEM-T

9.050

Produces neodymium, guts of rare earth magnets. Involved in bonded magnets, which are cheaper than centered magnets. Rare earths have gone up significantly by a factor of 4% in the last year. Earnings expected to be $1.46 compared to $.45 last year. Risk is the quota system that China has on rare earths

2011-08-26

TOP PICK

5N Plus

VNP-T

8.310

Originally specialized in tellurium and cadmium telluride the core guts of what is used in solar cells. Acquired a company in April, which diversifies them into other industry products. Just reported earnings, which were very significant. Sales growth up over 460%. 15% ROE. Dirt cheap.

2011-08-26

DON'T BUY

0.455

Extract protein from canola. Attempting to get to commercial levels of production. Initially had some problems with foaming in the process. Once they are back up in production there'll be moving to a 2nd shift, which allows them to pull Level 1 proteins. Real earnings come when they start pulling a much more valuable part of proteins. This will take $10 million of CapX and a year of development. Sold his holdings.

2011-08-26

DON'T BUY

Legacy Oil + Gas Inc.

LEG-T

10.140

In the bottom 15% of his database. Cash flow growth is modest at 11%-12%. Forecasted at 36% next year giving a 4X price to cash flow. Prefers Coastal Energy (CEN-T).

2011-08-26

Comment

Avion Gold

AVR-T

2.110

Gold. Ranks neutral in his models. Earnings have been revised downward slightly by about 2%. Decent earnings growth at 11%. Next quarter's earnings growth expected to be 23%.

2011-08-26

Comment

Poynt Corp

PYN-X

0.115

App that allows you to find a restaurant, movie theater. Interesting product. Big challenge is can they make any money. There are no analysts covering this company so there are no earnings estimates. Very speculative.

2011-08-26

Comment

Tourmaline Oil Corp

TOU-T

31.800

Current earnings outlook on a price to cash flow basis is 18X. 55% cash flow growth forecasted for 2012. Not cheap at 11.6X. The advantage is they gush huge amounts of cash flow and pay back their wells in anywhere from 12 or 6 months or less. Significant land positions.

2011-08-26

BUY

CRS Electronics

LED-X

0.480

Manufacture LED lamps. Have a replacement for MR16 (2 pin small floodlights that are used in homes. Advantage is that you can dim without flicker and the most natural color spectrum of others. Possible sales of $25 million in 2012. Early-stage speculative company.

2011-08-26

PAST TOP PICK

Dalsa Corp

DSA-T (Dead)

18.230

(A Top Pick June 18/10. Up 57.49%.) Acquired.

2011-05-31

TOP PICK

Descartes

DSG-T

6.590

Software to help customers make/receive deliveries. High free cash flow generator at 7% on a four quarter generating basis. Analysts expect a 56% increase in earnings when they report June 2nd. Jan/12 year end earnings are expected to grow 32% to $0.44. 13X PE.

2011-05-31

TOP PICK

CGI Group (A)

GIB.A-T

22.340

11% of 1st quarter free cash flow yield so are throwing off a massive amount of cash allowing them to buy back stock. Earnings on July 27th expected to be $0.38, up 38% from last year. Expected to earn $1.58 as at Sept/11, up 33% from last year. 13.8X PE.

2011-05-31

Comment

41.350

Ranks very high in his database. 15% four quarter trailing fee cash flow so is massively profitable. Transitioning over to the new QNX operating system, which is in their Playbook. Expect they will bring out new handsets in 2012 that offer blistering hot processors. Also expecting great growth in the fare east. Expect to know by February how they are making out.

2011-05-31

TOP PICK

7.920

(A Top Pick June 18/10. Up 141.64%.) Holds patent licenses and will be listed on the NASDAQ shortly. Expected to report $0.07 on June 6 compared to $0.01 last year and is expected to grow to $0.13 when reporting on Sept 6th. 2012 PE of 13.6X PE. 29% earnings growth.

2011-05-31

PAST TOP PICK

2.360

(A Top Pick June 18/10. Up 31.11%.)

2011-05-31

Comment

JDS Uniphase (US)

JDSU-Q

20.190

Huge opportunity for them in the optical space. 17X PE against June/12. Pretty crisp earnings growth with $0.77 growing to $1.14. Could be a pretty reasonable investment over a 2 year period.

2011-05-31

BUY

Arise Technologies Corporation

0.195

They are still optimistic with signing significant customers and being able to convert interest from the US government and/or enterprises. Their system allows, with a USB key, to remotely access any computer globally on a totally secure basis. Monthly recurring revenue model.

2011-05-31

WATCH

Hemisphere GPS Inc.

HEM-T

1.190

Make GPS systems for tractors to make sure seed rows are super accurate as well as good tilling and fertilizing. Now moving towards OEM in China as well as after market in N.A. Expected to earn $0.04 in 2011 and $0.12 in 2012. Historically has had difficulty getting traction. Thinks this company will benefit from strong prices in agriculture.

2011-05-31

DON'T BUY

APV-T (Dead)

0.100

Manufacturer of solar cells, particularly in Germany. Their big challenge is that the German market is over 40% of the global installed base for solar. Governments around the world are cutting back on solar subsidies.

2011-05-31

DON'T BUY

DragonWave Inc.

DWI-T

6.580

Ranks in the bottom 5% of his database. Expected to lose $0.27 in the current fiscal year. Provide Microwave for backhaul from towers. Challenge is that they have single customer concentration. Analysts chopped the earnings estimates by 15% in the last 90 days.

2011-05-31

BUY

1.760

Expected to lose $0.07 in 2011 and earn anywhere from $0.01 on a median basis to $0.03 on an average basis, which puts it at 60X PE multiple. If successful in being able to produce commercial quantities, they will start construction of the 2nd plant in N. Dak and looking out will double expansion again.

2011-05-31

SELL

Sensio Technologies Inc.

SIO-X

0.650

Company is covered by NCP Northland Capital who expects this company may become dominant for the de facto standard for 3D globally for content distribution display. Expected to lose $0.08 in 2011 and $0.04 in 2012.

2011-05-31

Comment

Intertainment Media

INT-X

0.980

Do the Ortsbo translation automatically on the internet. There has been a debate as to whose technology underlies their conversion. Some concern that their Ortsbo product and Google’s are almost identical.

2011-05-31

DON'T BUY

Smart Technologies

SMT-Q

7.060

A lot of their revenues come from US governments, both federally and local who have funding problems. Forecasted earnings were $0.55 for 2100 and growing to $0.84. A couple of analysts have shaved the estimates. Trading around 9X PE.

2011-05-31

DON'T BUY

Aastra Technologies

AAH-T

23.520

Traditionally been lumping in terms of earnings. Earnings expected to grow 50%. 11% ROE. Spikes up and down. Very well run but challenges with sales and dramatic changes in their business. Doesn’t own it because of volatility.

2011-03-15

WAIT

Valeant Pharmaceuticals

VRX-T

39.560

Done fabulously over the last 12 months because of merger. 29 PE. Earnings expected to grow 154% and to grow again next year 64%. A lot of savings going forward is through tax savings from the old Biovale. Over next 2 or 3 months he will buy back his position.

2011-03-15

WAIT

Breakwater Resources

BWR-T (Dead)

5.320

Solid performer, but earnings are expected to go down from 1.28 to 1.01. Appears to be cheap. 5.5 times PE and 18% ROE. Good opportunities for zinc. Overall, steel will be quite good for the next 12 months. Hopefully BWR will bottom out in the next 2 months.

2011-03-15

BUY

Descartes

DSG-T

6.310

Recently reported earnings that were quite good. Do software that help transportation companies stitch together the movement of different types of transportation across different countries and continents. Strong recurring revenue portion of business model. Rates them 72 out of 600 stocks they track. Earnings expected to grow from 38 to 50 cents. Optimistic that they continue to build up cash for acquisitions.

2011-03-15

SPECULATIVE BUY

E-L Financial

ELF-T

481.000

Very good product. Manufacturing processes are very green. Battery is super compact. They are testing in massive pilots for utility companies to store power for peak time. Also could be used in cars. Analyst coverage just picked up. Sept ’11 earnings wont be up to much. Question is the next year. It’s very early days.

2011-03-15

PAST TOP PICK

Martinrea

MRE-T

8.570

(Top Pick Mar 18/10, Down 8.05%) Sold about 6 months ago. Earnings growth is expected to be 58%, 10.5 PE. Switch into Magna because it had better opportunities, but then sold before the hair cut

2011-03-15

TOP PICK

Paladin Labs Inc

PLB-T

32.910

Good opportunity, sales and marketing of drugs in Canada and other countries. They buy or license rights from others. 9% 4-quarter trailing cash flow yield. Cash is more than 25% of their market cap.

2011-03-15

TOP PICK

60.060

Keen to get his hands on the playbook. It operates on a new operating system and has dual processors. Has a full QWERTY keyboard on the screen. Stock at the moment is cheap. 46% ROE and 8.5 times Feb 2011 PE. The key is whether the new products will gain them market share. Playbook will have robust security, whereas Apple’s product can be hacked into.

2011-03-15

WAIT

Viterra Inc

VT-T

10.730

Had pretty good earnings growth, recently a surprise of 2%. Earnings expected to go from 45 to 79 cents when they report in current quarter. 8% ROE isn’t much because it is not above the cost of capital. If they keep reporting continued earnings growth over the next couple of quarters he will likely consider buying the stock at that time.

2011-03-15

DON'T BUY

Sierra Wireless

SW-T

9.880

Challenge is the half of their business that is involved in the equivalent of the Rocket Stick, where there is a competitor that keeps coming out with one better than their latest product.

2011-03-15

BUY

5.740

Earnings expected to be 45 cents, giving 13 PE. ROE 19%. Lots of mining of the patent portfolio to do. Looking at changing business so they don’t actually own the patents or pay the lawyers directly.

2011-03-15

PAST TOP PICK

A Comment -- General Comments From an Expert

2.030

(Top Pick Mar 18/10, Up 4.64%) Still likes it. Thinks summer’11 will be when investors see the true earnings growth in the medical side of the business. Legacy business is trailing off. 17% lift in earnings expected. 10.8 PE, 19% ROE. Nice 4 quarters trailing cash flow. Significant debt but due 2 years from now and cash will cover it.

2011-03-15

TOP PICK

Yamana Gold Inc.

YRI-T

12.060

Cheap. Gold production will rise by 46% by 2013. 8.7 times price to cash flow 2012, which is about 23% discount to other gold comparables. Good production growth for the next 2 or 3 years.

2011-03-15

N/A

A Commentary

0.020

Markets: It matters what causes a correction. What has happened in Japan impacts oil, etc. What they supply may be interrupted. First we thought there was a rotational correction and now it is a full 10% correction. We are in the midst of a correction and not the start of a new bear market. A lot of stocks and indices are well above their 200 day moving averages, so as long as the pull back stays above these then you can see the long term up trend is still in tact. By mid-year we should see another up-leg in this bull market.

2011-03-15

SPECULATIVE BUY

Neo Material Technologies Inc.

0.220

Device that plugs into USB and allows on a USB to reach into it through Internet on totally secure basis. May be used by Military. They may roll it out. 1 cent earnings this year, 3 next year if they do roll out.

2011-03-15

PAST TOP PICK

NEM-T

52.100

(Top Pick Mar 18/10, Up 73.56%) 19% of rare earth magnets are sold into Japan, so there is concern about an impact on sales. Costs are going up for raw materials faster than they can crank up their prices. Margins are going to get squeezed. Recently reduced position but will buy back in a month or two.

2011-03-15

BUY

Sandvine Corp.

SVC-T

2.300

Earnings will go from 4 to 6 cents. Recent drop was because company said earnings weren’t as expected. The coming quarter is expected to be down by 30%. Next year earnings should grow by 25%. 19 PE. Thinks company’s products will continue to be in demand.

2011-03-15

BUY on WEAKNESS

Trinidad Drilling Ltd

TDG-T

8.230

Oil and gas companies have done very well over the last year. Have recently pulled back. This one is the biggy in the group and has rolled over. PE is 17 times against this years earnings. Thinks there is a pretty good opportunity for the next couple of years.

2011-03-15

WAIT

DragonWave Inc.

DWI-T

7.100

The reason it did so well and then pulled back is that it has extreme single customer concentration. Clearwire was the customer, who is going through financing to continue the build out in other cities. There are also concerns about there being a second supplier. Needs to see if they get a second round of business from Clearwire later this year.

2011-03-15

WAIT

1.920

Assuming they can get the frothing part of the manufacturing process under control it will be quite attractive. Extract protein from canola. It can be used in baking and cooking. By end of year they should be up to speed. Loss of 6 cents for 2011 and earnings of 3 cents for 2012. Once production comes up to speed they will break ground on a second plant in North Dakota. On a 3-5 year basis, someone like VT might get interested in the company. Was a recent price hike in protein prices.

2011-03-15

TOP PICK

Valeant Pharmaceuticals

VRX-T

28.190

Technically very close to breaking out. Earnings expected to grow from $0.75 to $1.40 from Dec/10 to 2011 and a further earnings growth to $2. by 2012. Significant free cash flow generator. 9% free cash flow yield. Last year produced 3/4ths of $1 billion in free cash flow. Specializing on drugs for the central nervous system.

2010-12-09

BUY

Dalsa Corp

DSA-T (Dead)

14.450

Specialty is cameras to catch images and particularly moving towards infrared images for weather satellites as well as for manufacturing processes. Earnings estimates growing from $1.01 to $1.18, a 17% earnings growth for 2011 and 23% into 2012. 12X PE. ROE of about 13%. Cheap

2010-12-09

PAST TOP PICK

Golden Star Resources

GSC-T

4.430

(A top Pick Nov 17/09. Up 16%.) Sold his holdings for better opportunities.

2010-12-09

BUY on WEAKNESS

Mortice Kerns

MKX-T (Dead)

14.850

Software that tracks what software analysts and programmers are doing. Large clients are their customer base. Earnings expected to grow 23% from $0.59 to $0.73 in April/11 against a 20X PE and another 20% to April/12. Ranks in the top 15% of his database. Would like to see it at $12-$13.

2010-12-09

PAST TOP PICK

Martinrea

MRE-T

8.550

(A top Pick Nov 17/09. Up 6.87%.) Sold his holdings as unit sales of cars dropped. Prefers others such as Magna (MG-T).

2010-12-09

Comment

Omni-Lite Industries Cdn

OML-X

1.780

California company that makes very precise metal parts. A lot of their work comes out of the defense area. Recently got a new contract for a diesel engine and anti-lock brake component as well as green lead free ammunition.

2010-12-09

TOP PICK

Paladin Labs Inc

PLB-T

31.740

Earnings grow is forecasted at 24% form $1.02 to $1.27 to 2011 and a further 40% growth to 2012. About $110 million cash on hand, which may be used for accretive acquisitions.

2010-12-09

BUY

SXC Health Solutions Corp.

61.850

Expects earnings to go from $6.18 to $6.89, 11% growth into Feb/12. New Playbook will be significant for them as it introduces 1) new operating system and 2) ability to run on duo processors. Expect that platform will end up in handsets this coming summer. May be 5 million orders right out of the gate from corporations.

2010-12-09

BUY

SXC-T

44.870

Have a very transparent system for connecting drug payers so employers with workforces can reduce overall costs. A business of economy of scale. Not cheap but have very significant cash flow. Made enough to be able to pay for a recent acquisition out of cash. Analysts are forecasting an in crease of earnings from $1.09 to $1.53 against a 30 PE. 17% ROE.

2010-12-09

BUY

4.360

Have a large series of lawsuits going on and it is expected that some negotiations are going on and will be settled before the trial date in early January. Did a financing to bulk up the balance sheet and now have over $100 million as a war chest. Analysts are suggesting a $400-$600 million over a 5 to 10 year period.

2010-12-09

BUY

Computer Modeling Group Ltd

1.820

Earnings forecast to grow 33% to $0.26 by March/11. Should be easily able to pay off their debt in 2 years assuming debt is not converted into common. ROE is forecast at 33%. This summer is the key when you start to see their medical platform that has been 4 years in progress.

2010-12-09

HOLD

CMG-T

26.000

Ranks high at #5 out of 650 stocks in his database. Analysts are looking for earnings growth from $0.94 to $1.05 in March/11and further growth of 12% by 2012. Not cheap but the ROE is extremely high at about 66%.

2010-12-09

WATCH

Stikine Gold Corp.

SKY-X

0.370

In the early stages of using a local deposit in BC to read the frac sands. Just met them. In the midst of doing a financing. Great opportunity for the company on a 2 year basis but still need to get environmental, mining permits, etc. so it’s a long ways out.

2010-12-09

WATCH

Enablence Technologies Inc.

ENA-X

0.580

New CEO is working on pulling separate units together to enable cross selling, which would be a huge advantage for them. Earnings had a loss of $0.09 in 2009, expected $0.01 in 2011 and $0.04 in 2012 giving a 17X PE, a 13% earnings growth. Watching to see how things unfold.

2010-12-09

BUY

Neo Material Technologies Inc.

0.230

Have a device called MobiKey, which allows secure access to any computer globally. Have a potential contract with the US navy. Big question is if there will be a faster rollout of the product to increase earnings in 2011.

2010-12-09

TOP PICK

NEM-T

7.120

(A top Pick Nov 17/09. Up 62.16%.) Rare earth. One product is neodymium to make computer hard drives and magnets for cars. A lot of free cash flow. Huge opportunity in the Patinga mines in Brazil.

2010-12-09

Comment

Arise Technologies Corporation

APV-T (Dead)

0.175

Have a solar manufacturing plant in Germany and expanding into an installation location in Ontario where government has indicated a strong incentive to install solar residentially and commercially. Emerging growth story but not in his database.

2010-12-09

PARTIAL BUY

DragonWave Inc.

DWI-T

8.440

More of a bet because it is more of a backhaul on a wireless basis. Their biggest customer Clearwire (CLWR-Q) looks like they are going ahead with a gigantic financing to continue to build out their network, which would be positive for Dragon Wave. Speculative.

2010-12-09

SELL