QHR Corp. (QHR-X)

(Top Pick Dec 17/15, Up 151.21%) This was a cash deal, but he did buy shares of L-T on weakness. QHR-T was a software company for health records. He never expected L-T to be the buyer.

The 2^nd largest provider to Telus (T-T) of electronic medical records. There has been a push globally to get all of the physicians to get all of their medical records from file folders to electronic and online. In Canada the penetration rate is a little bit lower at only 65% while in other countries, such as the US, it is closer to 90%. Recently announced a partnership with Telus which, down the road, could lead to other opportunities.

Good management. Management will grow the company. A lot of selling held it down and now it has lifted. They will report clean, transparent results. They are the only ones with a national software platform. Margins are starting to expand. This is one of his top 5 holdings. They are very focused now. A wonderful business and a good growth opportunity in Canada.

They got rid of their money losing play in the US and are now the leader in medical records. T-T is the only competitor. QHR-X has a huge backlog. They have a recurring revenue model. He sees great growth ahead as the market is in the early stages.

The core business they are focusing on now is electronic medical software for Canadian physicians. They finally closed down their payment processing in the US, so this is a great entry point. Had some management and board changes so you now have a clean company. It is focused only on software sales in Canada. Revenues last quarter came a little bit under expectations because they are lowering the software installation price to clients, but are still receiving the same recurring revenue going forward. Very, very cheap for a software company.

(Top Pick May 5/14, Up 15.11%) They made some big announcements recently. They are closing their losing US business. Their Canadian business is growing very nicely. They are a takeout candidate for T-T.

(Top Pick May 5/14, Up 1.44%) A core position of his. He buys more on weakness. They have an integrated platform coast to coast. Thinks they will sell off a US asset and it will boost the stock.

They continue to grow by acquisition, and he thinks there is pretty good opportunity for them in the general healthcare space. The advantage is a recurring revenue model and offers pretty good opportunity over the coming 12 months.

Medical records developer. These guys are the leader. There are few players besides TELUS and Nightingale. Very profitable and good cash flow. The cheapest software company out there. 9 times forward earnings. It is volatile because it is a low priced stock. He accumulates and it is a big position.

Electronic medical records software. Leader in Canada. Less than 40% of practitioners have electronics records. It is quite cheap for a company with 80% of revenues recurring and excellent growth potential. No debt. Could make small acquisitions of weaker players.