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Compiling comments that experts make about stocks while on public TV.

Recent Opinions

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Date Signal Company Expert Opinion Price
2015-08-26 COMMENT Input Capital Corp
INP-X
Stephen Takacsy, B. Eng, MBA

Agriculture streaming company, dealing only in canola. A very seasonal business deploying capital to farmers to increase their crop yield, and then getting some return on capital, over 20%, with some bonus return on the canola crop. We are in a timeframe now where there is going to be very little news, so the stock naturally pulls back at this time of year. Buying it in the low $2 would be the right thing to do. Thinks it has huge potential to apply the same business model to other crops as well.


Price: $2.280
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 DON'T BUY Johnson & Johnson
JNJ-N
Gordon Reid

This has the pharmaceutical, devices as well as the consumer side. They are about one third each of the company. The Pharma side is doing very well. The consumer side has come on very well. The difficulty now is with the diagnostics and devices area, which is pulling the consolidated results down and making the stock just a little bit too expensive for him.


Price: $95.110
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: No
2015-08-26 COMMENT Liquor Stores N. A.
LIQ-T
Stephen Takacsy, B. Eng, MBA

Looked at this a year ago, but thought it was expensive and the dividend was propping up the valuation of the company. Liked their strategy of developing their own brands and selling them in the liquor stores. Dividend yield of 9%.


Price: $11.630
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-08-26 TOP PICK La-Z-Boy Inc.
LZB-N
Gordon Reid

A derivative play on the housing recovery. This company does well when the housing market does well. They are managing their business very well. Not only growing revenue, but are expanding margin. He is expecting about a 250 basis point expansion and margin over the next few years, which will go straight to profits, because it is operating leverage. Dividend yield of 1.17%.


Price: $27.320
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 HOLD Metro Inc (A)
MRU-T
Stephen Takacsy, B. Eng, MBA

Has been a huge winner for decades. A well-managed company in a very competitive market. Great, long term hold, except that it is very expensive today. This is the type of thing you want to buy on weakness.


Price: $35.440
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Unknown
2015-08-26 PAST TOP PICK Neulion
NLN-T
Stephen Takacsy, B. Eng, MBA

(A Top Pick Aug 21/14. Down 27.36%.) Announced a loss of their NHL contract, which was less than 20% of their business. They still have big clients like Rogers, NBA, USC and are growing internationally. He would be an aggressive buyer down at these levels.


Price: $0.790
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 BUY Prism Medical Ltd.
PM-X
Stephen Takacsy, B. Eng, MBA

A great little company. Make equipment for mobility challenged people. Growing very quickly in the US which is way behind Canada in terms of having special equipment in their hospital network. Great margins and great demographic tailwinds behind it. Wouldn’t hesitate to buy at under $11.


Price: $10.400
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 BUY QHR Corp.
QHR-X
Stephen Takacsy, B. Eng, MBA

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.


Price: $1.190
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 PAST TOP PICK Asian Television Network International
SAT-X
Stephen Takacsy, B. Eng, MBA

(A Top Pick Aug 21/14. Down 21.04%.) He likes it even better with the new CRTC rules, because an independent broadcaster in Canada, is going to benefit tremendously from the new “pick and pay” regime and the Skinny package. They have about 400,000 viewers across Canada that watch foreign channels, and are forced to pay $40-$45 for a basic package to get only a few channels that they really want. He can see them increasing profits over the next few years by over 50%.


Price: $2.010
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 BUY Sandvine Corp.
SVC-T
Stephen Takacsy, B. Eng, MBA

A software company that helps manage and analyse traffic over the Internet. Make great margins and they are real innovators. The low $3’s is a very good buying opportunity. Have a lot of cash on the balance sheet. They regularly buy back their stock in the high $2’s, so you are sort of protected on the downside.


Price: $3.070
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 HOLD Transalta Corp
TA-T
Stephen Takacsy, B. Eng, MBA

Incredible that this is so low. The news hasn’t been that bad. They are focusing on renewable energy and dropping that down into Transalta Renewables to get cash back up into the parent company. Transitioning from the old energy/coal fired world into natural gas and have had a lot of maintenance problems. Power prices in Alberta have hit them hard. At these prices he would probably hold on. Don’t try to bottom fish.


Price: $6.640
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-08-26 TOP PICK Ten Peaks Coffee Co
TPK-T
Stephen Takacsy, B. Eng, MBA

In a strong growth position now. Their decaf, which is chemical free and organic, is the only one that can use the words Swiss Water in it. They supply big chains like Tim Hortons and McDonald’s in Canada. They are just starting with McDonald’s USA. There is a whole 3rd wave of specialty coffee retailers developing in the US. They have perfected their technology so that you cannot tell the difference between decaf and caffeinated anymore. They are not able to retain the caffeine and resell it, but if they were ever able to do that, it would be icing on the cake. Thinks they can easily do $10 million EBITDA. A very unique, high margin, high barrier to entry, pre-cash flow generating company, that is going to be building a new plant and doubling its capacity. Dividend yield of 3.29%.


Price: $8.200
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 PAST TOP PICK Time Warner Inc
TWX-N
Gordon Reid

(A Top Pick Aug 20/14. Down 5.42%.) Had an absolute stellar report and still the stock got hurt. It is all around this “cord cutting” concept of the advertising model changing from traditional advertising on media mostly TV through cable. This is one of the least affected of all of the media companies. He is very happy with this and it is getting more and more enticing.


Price: $71.670
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 COMMENT UnitedHealth Group Inc
UNH-N
Gordon Reid

He prefers Anthem (ANTM-N), but this one does the job as well. You need critical mass (size) and they both have that. This company recently bought Catamaran, a pharmacy benefit company. This is where you bolt on naturally accretive operations to these companies, and they work very, very well.


Price: $113.460
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: No
2015-08-26 COMMENT Union Pacific Corp
UNP-N
Gordon Reid

Stock has dropped dramatically from $122 to $84, but it was too expensive to start. This brings it down into the 13, 14 multiple, which becomes more reasonable. 20% of their shipments are coal, which is a big negative. Have managed their operating ratio quite well, down to the mid-60s, which is a big positive for them. He is neutral on this.


Price: $84.100
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: No
2015-08-26 BUY Visa Inc.
V-N
Gordon Reid

A very fast growing company and a very simple business model. They process transactions and the sponsoring bank takes on any credit risks. Transactions are increasing at a very rapid rate. About 55% of their business is now done internationally, and about 60% of their business is debit cards. With the correction, they are down to about 20X earnings, and it is an excellent time to make an investment in this company.


Price: $70.690
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 DON'T BUY Whistler Blackcomb Holdings
WB-T
Stephen Takacsy, B. Eng, MBA

A ski resort with some real estate potential. Most of the real estate potential has been milked in the past. You are really betting on the weather and the US$. Pays a pretty hefty dividend, so that tends to support the valuation. He finds it very expensive for what it is. Not a lot of growth potential.


Price: $21.290
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Unknown
2015-08-26 BUY Walgreen Boots Alliance
WBA-Q
Gordon Reid

CVS (CVS-N) or Walgreen (WBA-Q)? He owns both and they are both great opportunities. Demographically they are both in a sweet spot with the aging of the population and the need for prescription drugs. Couple that with Obama care, which mandates that people have insurance that will allow them to get those drugs. CVS trades at a couple of multiple points cheaper and also its earnings predictability is a little bit higher, but he would own both.


Price: $85.380
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 COMMENT Wells Fargo
WFC-N
Gordon Reid

Sell Citigroup (C-N) and buy Wells Fargo (WFC-N)? If you understand the differences between the 2 banks and make considered decisions, then you could. He owns both. This is more of a housing play, the largest originator of mortgages. It is more expensive and more predictable. It just depends on what you are looking for in a bank. They are going to move roughly together, but with a positive economic background, Citigroup might recover more quickly because of the valuation spread.


Price: $52.300
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 BUY Canadian Satellite Radio
XSR-T
Stephen Takacsy, B. Eng, MBA

On a Price to free cash flow basis, this is very, very attractive. Has very little CapX so has a huge amount of free cash flow. Looks at this as a cable company into a car. They’ll be moving the dividend up slowly, but surely, over time. A very, very safe high yielding stock to hide in right now.


Price: $5.060
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-25 N/A A Comment -- General Comments From an Expert
A Commentary
Eric Nuttall

Energy. The implosion we have had rivals the great recession, and in fact is worse. In some cases names are trading at all-time lows. Negativity in the energy sector is unparalleled and is really historic. There are 3 reasons he feels people are so bearish on oil. 1.) We are told demand is very weak and there is a fear of Chinese demand falling. 2.) We are awash in oil with Iranian oil hitting the market and US production still up. 3.) The forward Strip with oil below $50 is all the way out to 2017. You can see why people are being far too negative. 1.) Demand today is at record amounts. Year-over-year growth rate is as strong as it has been since coming out of the great recession, so we consume more barrels today than we ever have in history. 2.) We know Chinese demand is weak, but he would love to see the data points that people actually have, because the numbers he has shows record oil imports into China and record gasoline consumption in China. Their demand has been flat lining for 3 years, so it is not a new story. If you remove China, emerging economic oil demand has been growing by 1 million barrels per day, each year for the past decade. At current oil prices, it is impossible for US production to grow and we are months away from it being down year-over-year. Even at $45-$55, US oil production could be down by half a million barrels per day by next year. The worst case of Iran is about 800 hundred thousand barrels a day to come onto the market. That represents 6 months of demand. For the past 5 years, outside of OPEC and the US, production has been falling while the average oil price has been over $100. There are companies that can theoretically still drill wells that have a positive rate of return, and yet are still going bankrupt. This is because the amount of cash flow most companies generate is not enough to offset their decline. 3.) The oil Strip tells us we should be negative. He believes we have to go to 2017 until oil is over $50. Looking historically at the predictive capability of Strip, the R squared is less than 1%. That means that one time out of 100 the Strip is actually accurate.

The valuation of these energy companies is unparalleled. You can get so much value for free, because everybody is so pessimistic. It is a waiting game of maybe 1-2 quarters. If he can buy stocks that are trading at 5X cash flow where he is getting possible reserves, their dividend, of which many are sustainable when we get a rally, stocks can go up by 50%-100%. He personally thinks we will recover to around $55-$60 at some point next year.


Price: $0.020
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: _N/A
2015-08-25 N/A A Comment -- General Comments From an Expert
A Commentary
Jason Donville

Markets. Every now and then the market goes through a chaotic period where it kind of loses itself. It detaches itself from fundamentals and you get either a selloff or equally you get a huge run in the market, but we don’t consider that to be a problem when it is going up. This is the 1st really serious correction in about 4 years and is probably overdue. The important thing is to not lose track that earnings, generally speaking, are coming in line. It is really an issue of supply/demand for stocks as opposed to a big reaction to what is happening on earnings. Ultimately earnings drive where the market is going, and as a consequence this will come to pass in the not too distant future and will be back into a good market. His thesis on growth stocks, which will very much affect the NASDAQ, is that the knowledge based industries are often the most attractive place to be. These stocks can have very volatile moves to the upside. These stocks have been cruising for very, very long time, so if they check back by 10%-15% it might seem like a pretty severe correction. It is a normal course of events that the market has deposits from time to time and sorts itself out. The key thing is that nobody can time the short term movements of the market or trade it. Focus on resilient business models that can grow under any economic circumstances, and when you find you are in a market like this, just ride the storm out.


Price: $0.020
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: _N/A
2015-08-25 N/A A Comment -- General Comments From an Expert
A Commentary
Jason Donville

How do you assess what constitutes a competent and astute management team? When he meets with a new company, the first meeting is to take a measure of the CEO, not the company, and find out what his story is. His theory is that people are not mediocre for 30 years and then become superstars. There are usually a whole bunch of signs of exceeding expectations or outperforming all the way through their career. The smaller the company, the more important the jockey. He would then check out the management team.


Price: $0.020
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: _N/A
2015-08-25 HOLD A Comment -- General Comments From an Expert
A Commentary
Jason Donville

Canadian Banks? Excellent quality and pay good dividends. They don’t have a high enough ROE for his fund, but for somebody who is doing their own thing, having a weighting in banks is terrific. Given all the macro issues in the world right now, he wouldn’t actually buy a single bank. You can own any one of the pick 6 banks. They are all well-managed.


Price: $0.020
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: No
2015-08-25 COMMENT Baytex Energy Corp
BTE-T
Eric Nuttall

The market cap is significantly lower than what they paid for Aurora Oil and Gas, which was their entry into the Eagle Ford. Stock fell from $23-$6 in roughly 2 months. Cut the dividend to zero. They still remain a highly leveraged oil company, so if he is right in his call on oil appreciating to $55-$60, this is a name that could easily go up 100%. The debt is a little concerning. At current oil prices he doesn’t think it is sustainable. If you are bullish on oil with a recovery coming within 6 months, you could do extraordinarily well. If he is wrong on his oil call and it stays around $40-$45 for the next 6-9 months, this is a name that could get into some trouble.


Price: $5.690
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Unknown
2015-08-25 COMMENT Calfrac Well Services Ltd
CFW-T
Eric Nuttall

Trican (TCW-T) or Calfrac (CFW-T)? This is a better company operationally and geographically. Less debt, although they do have a lot of debt as well, so everything is not rosy. His preference would be Canyon Services (FRC-T).


Price: $3.890
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: No
2015-08-25 HOLD Canadian Natural Rsrcs
CNQ-T
Eric Nuttall

This one comes down to your call on oil. If you think we are going to stay at $37-$38 forever, don’t own the stock and don’t buy anything else. Relative to other large caps, this wouldn’t be his top name. He would still lean towards a Cenovus (CVE-T) or Suncor (SU-T), but wouldn’t buy either because they have oil sands exposure. He also questions what the NDP government is going to come out with. They are more leveraged than most and have raw heavy oil exposure that they don’t upgrade, relative to Suncor. If you own it, crystallize a tax loss and roll it into another name that he likes better.


Price: $25.840
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Unknown
2015-08-25 TOP PICK Crescent Point Energy Corp
CPG-T
Eric Nuttall

The most mispriced oil/gas stock in Canada that he can find. Their proved reserves can produce oil for 10 years. At $55 oil, it is trading at 5.5X its total corporate value relative to cash flow. That means you are getting part of the proved reserves for free, their probable reserves for free and all of their own booked inventory for free. It has never traded as cheaply as it has today. Eliminated people’s major concerns and cut the dividend so it is right sized. He has it being sustainable at about $50-$55 or higher. The cash flow is around 2.5X. Eliminated their DRIP so there is no dilution. Dividend yield of 9.02%.


Price: $12.790
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Yes
2015-08-25 PAST TOP PICK Cipher Pharmaceuticals Inc.
CPHR-Q
Jason Donville

(A Top Pick Oct 24/14. Down 33.71%.) They were in a bit of a jam in that they had one particularly strong product but didn’t have a sales force, so they acquired a company in the US to get them a sales force. He could see this was going to drop their earnings, so he sold his position.


Price: $5.760
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: No
2015-08-25 TOP PICK CRH Medical Corp.
CRH-T
Jason Donville

The best small-cap company in Canada that he can recommend. Great management team. 9X 2016 earnings. 31% ROE. He is very comfortable in saying that in 5 years it will be a $25 stock.


Price: $3.930
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: Yes
2015-08-25 PAST TOP PICK Constellation Software Inc.
CSU-T
Jason Donville

(A Top Pick Oct 24/14. Up 84.82%.) The management team is so good at allocating capital.


Price: $541.110
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: Yes
2015-08-25 COMMENT Concordia Healthcare
CXR-T
Jason Donville

A great company. We are moving into a world of slow growth because of demographics. Growth is going to be in the new, new things such as pharmaceuticals, healthcare, technology and some consumer products. It is probably not going to be the old-line, mundane industries. Thinks it is going to come under increasing buying interest from large cap managers. Once we get over this turbulence, he can see this going to $120-$130 very quickly.


Price: $91.680
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: Yes
2015-08-25 BUY DIRTT Environmental Solutions
DRT-T
Eric Nuttall

Stock had a massive rally last year because it was significantly undervalued. When it was approaching $7-$8 he thought valuation was getting a little long in the tooth, so he eliminated his position. There has been about a 40% correction in the last couple of months so he started buying at around $5.25-$5.30. Valuation is compelling. If you follow estimates, they are able to grow earnings by about 75%, and it is trading at around 16X. Raised about $42 million at around $8, so you buy the stock today 40% below where they raised their $42 million. Stock is weak because of exposure to China, but they have zero exposure there. Also, based in Calgary, so they must have enormous exposure to the energy sector, but that is only about 12% of their revenue. On valuation they are paying 16X earnings with 75% growth. About $80 million net cash on the balance sheet.


Price: $4.940
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Yes
2015-08-25 COMMENT easyhome
EH-T
Eric Nuttall

A business model that is egregiously profitable. Instalment lender which lends money to people who wouldn’t otherwise qualify with a bank, so are able to gets slightly higher interest rates. There are long-standing concerns about regulatory risks. Announced last quarter that they will be tightening up their lending standards, so will no longer lend to people at the very bottom of the barrel. It will take time to replace those with new higher grade customers. After 2 crappy quarters, he needs them to put a good quarter for him to have interest in the name again. Incredibly cheap.


Price: $15.200
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Yes
2015-08-25 COMMENT Canyon Services Group
FRC-T
Eric Nuttall

(Market Call Minute.) He wouldn’t necessarily buy this, but if he had a gun to his head, he would buy it over the other 2.


Price: $4.250
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Unknown
2015-08-25 COMMENT Freehold Royalties
FRU-T
Eric Nuttall

(Market Call Minute.) Has been a big buyer in this. His big concern is that Penn West (PWT-T) is their biggest royalty payer so if it goes bankrupt, what happens to their royalty income? It is a bit of a concern, but even excluding that, the stock has been pounded, and the royalty model should hold up a lot better than a conventional A&P model.


Price: $9.030
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Yes
2015-08-25 PAST TOP PICK CGI Group (A)
GIB.A-T
Jason Donville

(A Top Pick Oct 24/14. Up 23.49%.) Still one of his top 5 positions. He has the company at about 11X 2016 earnings. This company grows at 20% year after year. It is a great “buy and hold” stock. It is 20X 2016 cash earnings.


Price: $46.260
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: Yes
2015-08-25 BUY Grenville Strategic Royalty
GRC-X
Eric Nuttall

Came out with their quarter last week where they announced that operations were fine. They do royalty agreements with companies that would not necessarily qualify for prime credit with the banks. It is normal for this business model to occasionally take a bad debt expense, and write the investment down to zero and then hopefully recover some of it. They did that on a $1 million loan which represented 2.5% of their loan book, and the market cap fell by $20 million. That was an overreaction. Just announced that one of their larger deals was acquired by Hitachi, so it is highly likely that they are going to get bought out. That means they will have more money to deploy. Thinks this sets them up for a dividend increase in 2016. A few more quarters will prove the viability of their business model. A dividend increase would help that along as well. Yielding about 8% and trading at about 16X so it is a good valuation.


Price: $0.600
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Unknown
2015-08-25 COMMENT Granite Oil Corp
GXO-T
Eric Nuttall

There has been pretty heavy insider buying. The challenge is that it is a single asset dividend payer. This gives you concentration risk. Came out with a 1200 barrel a day test in their core play. He is concerned that institutional support will never be huge because of the size of the company and the single asset risk. If you are looking for a fairly steady, low payout hedge producer, it is not terrible, but there are names he likes better. Yield of 6.8%.


Price: $5.600
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Unknown
2015-08-25 COMMENT Long Run Exploration
LRE-T
Eric Nuttall

Debt to cash flow is around 6X, which is high. Cut the dividend to zero, which led to a freefall in the stock. If you were an uber bull on oil, this is the type of name that could go up several fold. Personally it is not his strategy because he thinks he can make 50% or more buying more established names. Higher risk than what he would be comfortable with. In his estimation, they are unable to grow oil at anything remotely close to today’s oil prices. High debt, declining production, declining product pricing which is a tricky situation to be in.


Price: $0.345
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Unknown
2015-08-25 COMMENT MEG Energy Corp
MEG-T
Eric Nuttall

Debt is extremely high. Unless there is a miraculous oil recovery, there can be serious repercussions. If he is right on oil, you could double your money, but if he is wrong, it would be a struggle.


Price: $10.640
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Unknown
2015-08-25 TOP PICK MTY Food Group
MTY-T
Jason Donville

Has ROE every year of 20%, very consistent. Not much of any leverage in the business, and very little economic sensitivity. Extremely well-managed. Trading at 14X 2016 earnings, which is really cheap for this kind of growth. Dividend yield of 1.23%.


Price: $32.670
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: Yes
2015-08-25 TOP PICK Northern Blizzard Resources INC
NBZ-T
Eric Nuttall

Has fallen from $18 and he started buying at around $4. This company is 60% hedged on oil production next year, close to $80. Debt to cash flow is below 3X using Strip pricing. Have no debt maturity until 2022. Recently cut the dividend by 50%, and current yield is around 14%. Doesn’t see that being cut anytime soon. They are 100% Saskatchewan, so you have no exposure to the NDP uncertainty.


Price: $3.680
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Yes
2015-08-25 COMMENT Nobilis Health Corp
NHC-T
Jason Donville

Just put out a great quarter 2 weeks ago, so he is surprised the stock is still in the $6-$7 range. Really impressed with the way they are running operationally. He thinks the numbers continue to be strong going forward. Really cheap at this level.


Price: $6.380
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: Yes
2015-08-25 HOLD Neulion
NLN-T
Jason Donville

Got rocked recently by the loss of the NHL contract, and thinks it was a bit overdone. Wants to see a few more quarters to make sure the rest of the business is evolving and that the profitability comes back. Has seen enough good signs from management that he is going to ride this out.


Price: $0.760
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: Yes
2015-08-25 COMMENT NYX Gaming Group Ltd
NYX-X
Eric Nuttall

3rd largest manufacturer of gaming technology, and get a cut of the winnings from casinos globally. The fall in the stock is a little bewildering. Operationally things seem to be going very well. They finalized a $150 million acquisition of Chartwell and Cryptologic in June and raised $60 million at around $4.45, so you can buy the stock 40% lower without assuming a deal risk. Expects them to make $0.35 in earnings next year. Trading at about 6.5X in forward earnings and the CEO believes they can grow top-line at around 30% a year. That should translate into a minimum, he hopes, of 30% EPS growth. Board owns about 30% of the stock.


Price: $2.320
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Yes
2015-08-25 WATCH Patient Home Monitoring
PHM-X
Eric Nuttall

He is struggling with this. The market has to get comfortable with the new CEO in terms of whether they can deliver on their M&A acquisition targets. If they can, the stock is very, very cheap. At the same time they have about an 8%-10% organic growth.


Price: $0.620
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Yes
2015-08-25 HOLD Patient Home Monitoring
PHM-X
Jason Donville

The reality is that they have made the mistake of over promoting themselves. They should stop talking to the Street and the market, take the 8 companies they have acquired, get them consolidated and put up some earnings. We need to see operational excellence. The stock is cheap and has been oversold, and it will go higher from here. Becoming a managerial story as opposed to a Capital Market story. Don’t go aggressively buying this stock.


Price: $0.620
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: Unknown
2015-08-25 COMMENT Paramount Resources
POU-T
Eric Nuttall

(Market Call Minute.) Staying away from this for now. Debt to cash flow next year is now in excess of 6 times. Debt is a little too high for his comfort level.


Price: $11.440
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: No
2015-08-25 BUY Pivot Technology Solutions Inc.
PTG-X
Jason Donville

This was a Top Pick on May 6/15. They put up a great quarter recently. The stock has gone flat in the last while. Very inexpensive, but don’t make it big weighting.


Price: $0.520
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: Yes
2015-08-25 DON'T BUY Pure Technologies Ltd
PUR-T
Eric Nuttall

Has owned this in the past, but has struggled that for several quarters they have made almost no money. Have lots of EBITDA, but have never been able to generate significant EPS. It has always carried a premium multiple. Seemed to have stumbled in their last quarter and even the quarter before. They are now in a “show me” stage.


Price: $5.560
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: No
2015-08-25 COMMENT Penn West Petroleum
PWT-T
Eric Nuttall

Struggles to see equity value in this company unless you are a really, really big oil bull. Operationally they have achieved inferior results in all of their operations compared to any other companies in their plays. Management has been a little aggressive in the use of financial leverage. They need to sell assets to pay down debt.


Price: $0.850
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Unknown
2015-08-25 HOLD Rifco Inc.
RFC-X
Jason Donville

Most recent quarter was a great one. ROE was 28%. With all the stuff that is happening in the marketplace right now, there are a lot of concerns about Alberta specifically, and you also have a lot of concerns about financials. Thinks they put in a great quarter. To be a buyer of the stock, he has to see oil find its bottom. Once they got that stability and he sees another quarter or 2, this will be fine. Probably in Q1 or Q2 of 2016 he’ll begin to add to his position again. A very well-managed company.


Price: $2.450
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: Yes
2015-08-25 COMMENT Raging River Exploration
RRX-T
Eric Nuttall

(Market Call Minute.) Super quality management team and it trades as such. They are increasing (?) their growth rate eventual into a dividend model. Good CEO. It’s just that the multiple is a little rich compared to other opportunities.


Price: $7.000
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Unknown
2015-08-25 PAST TOP PICK Spartan Energy Corp
SPE-T
Eric Nuttall

(A top pick July 25/14. Down 49.38%.) At $40 oil, their production is falling just like every other oil company in North America. In south east Saskatchewan, probably the most economic area of all of Canada. They are immune from the NDP uncertainty. Has just been buying yesterday and today. At $2 it looks pretty attractive.


Price: $1.950
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Yes
2015-08-25 BUY Tucows Inc.
TC-T
Jason Donville

This is the GoDaddy.com of Canada. Every year they keep buying back more and more stock because there is so much cash flow. They are now trying to get into the telecom through the Internet. The company is extremely excited about the growth in that business. The Internet domain is the cash cow (the 1st cow) and the 2nd cow will be Ting (?). That one is not as profitable, but the profitability is growing rapidly. Has a 31% ROE.


Price: $35.000
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: Yes
2015-08-25 DON'T BUY Trican Well Service Ltd.
TCW-T
Eric Nuttall

Trican (TCW-T) or Calfrac (CFW-T)? This one is days away from tripping covenants, so they have to renegotiate with their debt holders. Have negative EBITDA so their debt to cash flow is infinite right now. A really, really, really tough situation to be in. If they can renegotiate, you could see the stock increase materially, but if not there may be little equity value in the company. His preference would be Canyon Services (FRC-T).


Price: $1.160
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: No
2015-08-25 TOP PICK Torc Oil & Gas Ltd
TOG-T
Eric Nuttall

Doesn’t view the dividend as likely to being cut. Even if it is, the stock has been pounded so badly that he feels the stock would rally, not go down. Relative to its proved reserves, it is trading at around 6X cash flow and has never traded this cheaply. Its proved reserve life is around 9, so you are getting the proved reserves for free. Dividend yield of 11.3%.


Price: $4.750
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Yes
2015-08-25 PAST TOP PICK Tourmaline Oil Corp
TOU-T
Eric Nuttall

(A top pick July 25/14. Down 44.24%.) It is being penalized along with a lot of other names, even though it only has 17% liquids exposure. He still likes all the attributes. Isn’t buying it currently because he is targeting oil names that can go up by 50% without taking on a lot of risk. This one would be 30% rather than 50%. If you are bullish on natural gas, this has great insider ownership, a fantastic geological team and low debt.


Price: $29.070
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Yes
2015-08-25 HOLD Ten Peaks Coffee Co
TPK-T
Jason Donville

Good company. Last year was one of those years where everything that could go right went right. Wait and see a couple of quarters to see what happens. There are 2 things. The use of proceeds from their financing, and wait and see a couple of normal quarters when not everything in terms of coffee prices, etc. is going their way. There is a good chance that down the road he will be owning this.


Price: $7.850
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: No
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