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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
2015-05-21 TOP PICK Prudential Financial Inc
PRU-N
Andy Nasr

(Top Pick Jun 9/14, Down 1.32%) He was early.  It trades at a reasonable valuation and you should see a better return of capital to shareholders over the next year or two.  The valuation is attractive.  Last quarter they reported a favourable capital position, which was held against them until now.  More and more big corporations are off loading their pensions to companies like this one.


Price: $85.630
Subject: NORTH AMERICAN DIVIDEND & REITs
Bias: OPTIMISTIC on US ECONOMY
Owned: Yes
2015-05-21 HOLD Qualcomm
QCOM-Q
Stan Wong

In the long term, this is a very viable and very strong name. Have run into some issues in China, which seem to have been resolved. The semiconductor market is a high beta market, so you will see some stocks do very well, while others do not. He likes what they are doing in terms of their strategy. A lot of the mobile phones are going to be playing TV, so their Snapdragon chipset is the way to go.


Price: $70.090
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: No
2015-05-21 BUY Canadian Real Estate Investment
REF.UN-T
Andy Nasr

A core holding.  There is a difference between a good REIT and what you should pay for it.  This is a good entry point.  He prefers BEI.UN-T however because it was punished due to the energy sector.


Price: $43.610
Subject: NORTH AMERICAN DIVIDEND & REITs
Bias: OPTIMISTIC on US ECONOMY
Owned: Unknown
2015-05-21 HOLD RioCan Real Estate Investment
REI.UN-T
Andy Nasr

He likes the name.  Strip centers with national anchor tenants.  Occupancies were still in the high nineties at the beginning of the year.  Hang on to it.


Price: $29.000
Subject: NORTH AMERICAN DIVIDEND & REITs
Bias: OPTIMISTIC on US ECONOMY
Owned: Yes
2015-05-21 COMMENT Tesla Motors Inc
TSLA-Q
Stan Wong

This is a 200X forward price earnings multiple. Some of these names are great products, great services, but in terms of valuations they are way out there, and this is not a name he can own for clients. Likes the product and feels they have a unique business model, but they have a high burn rate in terms of cash flow.


Price: $245.620
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: No
2015-05-21 BUY Western Forest Products Inc.
WEF-T
Andy Nasr

People rotate into these if they think the Canadian dollar will depreciate so you should see some benefit.  It rolled back a bit because of a temporary strengthening in the CAD$ in the last month or so.  This stock should do well as lumber prices increase as it goes into the period of seasonal strength.  It is a relatively high quality name.


Price: $2.200
Subject: NORTH AMERICAN DIVIDEND & REITs
Bias: OPTIMISTIC on US ECONOMY
Owned: No
2015-05-21 HOLD WPT Industrial REIT
WIR.U-T
Andy Nasr

They are going to undertake a strategic review process and might sell some or all of their properties.  He thinks there is still some upside.  He likes the industrial subsector and some US exposure.


Price: $12.600
Subject: NORTH AMERICAN DIVIDEND & REITs
Bias: OPTIMISTIC on US ECONOMY
Owned: Yes
2015-05-21 COMMENT Wal-Mart Stores Inc.
WMT-N
Stan Wong

The stronger US$ and the rising wages affected some of the results on a negative front earlier this week, causing a miss on both the top and bottom lines. 30% of their revenues come from outside of the US, so the strong US$ will affect their earnings. It is trading below its 200 day moving average, and at about 15X forward earnings with a 7%-8% long-term growth rate. This gives it a 2.7% PEG ratio. This is why he sold his holdings.


Price: $76.110
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: No
2015-05-21 COMMENT iShares US High Yield Bond Index ETF
XHY-T
Stan Wong

Continues to like the high-yield market. High-yield bonds continue to make sense. You are getting a 4.5%-5.5% yield. We are still seeing an expanding economy in the US. He doesn’t see any issues with owning high-yield bonds at this point.


Price: $21.090
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: Yes
2015-05-21 COMMENT iShares S&P/TSX Capped REIT
XRE-T
Stan Wong

One third of this is in Riocan (REI.UN-T) and H&R Real Estate (HR.UN-T), so it is not equal weight. You have to like these 2 companies because you are buying a 3rd of them through this ETF. A 4.75% yield which is nice. REITs are interest rate sensitive and real estate companies and REITs tend to borrow a lot of money, which could affect their operations. With interest rates started to move up, he is a little light on the REIT market. He would prefer a Telus (T-T) or BCE (BCE-T), high dividend players where you will see dividend growth.


Price: $16.630
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: No
2015-05-21 COMMENT iShares Diversified Monthly IF ETF
XTR-T
Stan Wong

This is an ETF of ETF’s. It is a balanced portfolio of about 60% fixed income and 40% in equity of income generating types of things. Interest rates in general as they move up, do affect income investments, so some parts of things in this portfolio are going to get affected. This will pay you a pretty decent income, and he feels the risk is relatively low.


Price: $11.920
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: No
2015-05-21 COMMENT BMO Equal Weight Bank ETF
ZEB-T
Stan Wong

With interest rates supposedly rising in the next 6-8 months, would you choose the BMO Equal Weight Cdn Bank (ZEB-T) or the BMO Covered Call Cdn Banks (ZWB-T)?  Generally what you want to know about what works best for a Covered Call strategy, is that when you feel that a particular sector is going to be relatively flat, or maybe slightly negative, that is when you are going to get the dividend on top of the covered call premiums. If you think banks are going to take off and do extremely well, you might as well own the Equal Weight basket.


Price: $23.280
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: Unknown
2015-05-21 COMMENT BMO Covered Call Cdn Banks ETF
ZWB-T
Stan Wong

With interest rates supposedly rising in the next 6-8 months, would you choose the BMO Equal Weight Cdn Bank (ZEB-T) or the BMO Covered Call Cdn Banks (ZWB-T)?Generally what you want to know about what works best for a Covered Call strategy, is that when you feel that a particular sector is going to be relatively flat, or maybe slightly negative, that is when you are going to get the dividend on top of the covered call premiums. If you think banks are going to take off and do extremely well, you might as well own the Equal Weight basket.


Price: $16.930
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: Unknown
2015-05-20 N/A A Comment -- General Comments From an Expert
A Commentary
Bruce Campbell (2)

Economy. He looks at a lot of economic indicators, which help to forecast when a recession might be coming. A Bear market typically leads a recession by 6 to 9 months. He wants to make sure he knows where things are going economically, and right now they look very strong. Watches the Leading Economic Indicator and specifically, the 18 month moving average to make sure the leading economic indicator is ahead or above the 18 month moving average. When it crosses below, it can mean that a recession is coming fairly shortly. Also, likes to watch interest rates and make sure that there is a normal yield curve. Any time the yield curve inverts, he knows that it is a real solid sign that we can see a recession in the near future. Also, any time energy prices rise by 80% or more, in a given year, it usually leads to recession. This year we have had quite the roller coaster in energy. It bottomed out in March in the $42-$43 range. So far we are just under $60, and probably have room to about $75 before we have to be concerned.


Price: $0.020
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: _N/A
2015-05-20 N/A A Comment -- General Comments From an Expert
A Commentary
Paul Gardner, CFA

Economy. The Fed met today and the key takeaway seems to be that it is unlikely that rates are going to be raised in June. The bigger issue is September. Do they delay it until next year? That is the big issue. He believes they will probably hike in September, but very, very slowly. A lot of this has to do with normalization of the economy. If you have an economy that is growing decently and there is US growth beyond 2% along with employment growth, don’t you want to normalize a bit? With inflation rates of 1.5%, you should probably have mid-rates of around 2.5% and long rates around 3.5% in the US. The winter was harsh, which impacted economic numbers. With US growing beyond 3%, we have to start now to be putting in higher bond yields, which is what we have seen over the last 6 weeks. Bond prices are down around 3%, which is very aggressive. Probably another 25 basis points of tightening in the bond market will suffice. This is a great environment for corporate earnings with global growth at about 3%, the lowest funding yields we have seen in 2 generations, labour costs not going up that much and trade agreements with global possibilities going on all over the place, so this is a great time to own companies. Thinks equity markets will continue to tick up, not aggressively, but grudgingly. This is the greatest opportunity to be in the equity markets.


Price: $0.020
Subject: FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias: BULLISH
Owned: _N/A
2015-05-20 COMMENT AutoCanada Inc.
ACQ-T
Bruce Campbell (2)

(Market Call Minute.) Looking very carefully to get back in. It is in line with its peers, and probably has a higher growth rate.


Price: $43.720
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-05-20 PAST TOP PICK Aimia
AIM-T
Bruce Campbell (2)

(A Top Pick May 28/14. Down 26.39%.) Started breaking down technically in August, so he got out. With lower revenue, they basically saw their margins compressed. Has this on his radar screen again. Just announced earnings and the numbers were quite good. Also, announced a dividend increase and a share buyback.


Price: $13.690
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-05-20 COMMENT Artis Real Estate Investment Trust
AX.UN-T
Paul Gardner, CFA

Price has dropped. When rates go up, that generally hurts real estate or REIT market. Very diversified and great managers of assets. Have most of their exposure in Manitoba, Saskatchewan and a little bit in Alberta. Also had diversified over the last 4-5 years getting into the US. In the last quarter their occupancy actually went up, partly due to the US exposure. The biggest concern is the West and its weakness. The office segment is not his favourite place to be. It is only trading at about 12X AFFO. He tends to like the apartment space better. This is cheap and he would probably be a buyer more than anything else.


Price: $14.350
Subject: FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias: BULLISH
Owned: Yes
2015-05-20 PAST TOP PICK Bank of America
BAC-N
Paul Gardner, CFA

(A Top Pick May 5/14. Up 12.1%.) Trading at .7X BV and 10X earnings. Litigation has now settled down. It is cheap and the recovery in the US is helping them make profits. They are probably going to increase their dividends in the next couple of quarters. Also, interest rate lifts do help financials. He likes it and thinks there is more upside.


Price: $16.740
Subject: FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias: BULLISH
Owned: Yes
2015-05-20 COMMENT Blackbird Energy Inc
BBI-X
Bruce Campbell (2)

A pretty interesting little company. Drilled a couple of very expensive, very high impact wells in the Elmworth area near Grand Prairie, and he understands they had fairly good success with these wells. However, the market didn’t view it as that successful, because they didn’t immediately tie these in. It really starts to delineate the property. Just announced a new summer drilling program where they are going to drill a couple of more wells. Thinks they will eventually get acquired, because they don’t have the cash to continue these expensive wells.


Price: $0.210
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-05-20 COMMENT Callidus Capital Corp
CBL-T
Bruce Campbell (2)

(Market Call Minute.) This is cheap. They have grown their loan book a lot since their IPO, and the stock price is basically in line with where they went public.


Price: $14.900
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-05-20 COMMENT Com Dev International Ltd.
CDV-T
Bruce Campbell (2)

Watching this very carefully. What has caught the streets attention is their “exactEarth” business, which helps to pinpoint where ships are in the ocean. The street is discovering that this is probably worth a lot more than what it is being given credit for. At some point they might monetize this by selling it. Thinks they own 70% of it right now. The cash they would get would be used to grow their base business, increase the dividend or allow them to make some acquisitions.


Price: $4.810
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-05-20 DON'T BUY Corus Entertainment (B)
CJR.B-T
Paul Gardner, CFA

Had weak numbers the last quarter. It’s a tough business because of CRT decisions on “pick and play”, which really hurt them. Their radio stations are doing all right, but nothing stellar. There is always the issue of what Shaw Communication (SJR.B-T) is going to do with them. The one positive is that it is a very free cash flow positive business. He would avoid this because of the unknown with the CRT.


Price: $17.880
Subject: FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias: BULLISH
Owned: No
2015-05-20 DON'T BUY Canadian National R.R.
CNR-T
Bruce Campbell (2)

Rails have done fairly well recently and have had a bit of a pullback. His preference would be Canadian Pacific (CP-T) as he feels that they may have more efficiencies that they can push through. Both companies are trading at the upper end of their valuation range. Both companies are controlled by the supply side of things, so he wouldn’t enter at this time.


Price: $73.740
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-05-20 COMMENT Crombie Real Estate Investment Trust
CRR.UN-T
Paul Gardner, CFA

This is very, very stable and defensive in nature. Most of the stores are grocery defensive assets. The sector will get hurt if interest rates go up, but this REIT can handle it because of the very solid, stable assets. 7% yield.


Price: $12.830
Subject: FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias: BULLISH
Owned: Unknown
2015-05-20 BUY Chartwell Seniors Housing
CSH.UN-T
Paul Gardner, CFA

This is a better story now. It had invested in retirement homes in Canada and in the US. In the US, you had to deal with regulations, unionization and the rates of return that were poor. They have since exited the US and are trying to make a cleaner story, which is all Canadian. Also, it is a demographic story. Not that expensive. Not a bad Buy now.


Price: $11.370
Subject: FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias: BULLISH
Owned: No
2015-05-20 COMMENT Constellation Software Inc.
CSU-T
Bruce Campbell (2)

This has done a phenomenal job. Probably one of the highest compound return stocks in the last 3-4 years. They can probably continue to do what they are doing, but not at the same rate. He is happy to continue holding this.


Price: $511.000
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-05-20 COMMENT Cominar Real Estate Inv Tr
CUF.UN-T
Paul Gardner, CFA

Focused in Québec. Quite reasonable trading at about 7X AFFO. Thinks the Québec market is outperforming. Have done a good job of executing. The biggest issue is that they have to keep trying to grow, because the last couple of quarters has had a slowdown in the growth profile.


Price: $18.470
Subject: FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias: BULLISH
Owned: Yes
2015-05-20 COMMENT Concordia Healthcare
CXR-T
Bruce Campbell (2)

Looks very strong. Just completed the acquisition of Covis, which was completed earlier than scheduled, meaning that all of their numbers are bumped up. Also, talking about doing another deal that could be done as early as the 2nd half, which is only a couple of months away. It would be at least the size of Covis, if not bigger. This really opens up opportunities and expands the company. Thinks there is lots of potential.


Price: $85.000
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-05-20 TOP PICK Convalo Health International Corp
CXV-X
Bruce Campbell (2)

Basically in the acquisition of addiction rehabilitation centres in the US. Just signed a couple of deals today. Growing by acquisition as well as organically. It’s the same group that brought in Patient Home Monitoring (PHM-X). Michael Dalsin (Chairman) has said that the organic growth of this one will make the organic growth at Patient Home Monitoring looks like it is really nothing at all. Have a fair bit of cash on the balance sheet. Has a pipeline of 10 companies in advanced discussions for acquisition.


Price: $0.630
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-05-20 COMMENT DirectCash Payments Inc
DCI-T
Bruce Campbell (2)

Was disappointed with the recent results. The stock has gone down a fair bit. Feels strongly that management is doing a good job. Have had a difficult environment. Had to manage a number of different hurdles in the past and have always successfully done it. Probably looking to add at some point in time. Feels the dividend is fairly secure at this level. He would like them to stabilize their business and continue to grow. Seems like a lot of the disappointing results were around the Australian operations.


Price: $15.570
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-05-20 COMMENT DHX Media
DHX.B-T
Bruce Campbell (2)

This has recently come up in his rankings with the earnings numbers they just came out with. Very solid numbers. As this video on demand and streaming services propagate their way around the globe, this company is receiving more revenue. Had a few disappointments with a TV division, but they continue to build up their content and their cash flow numbers continue to ramp up. At some point in time, this company is going to be sold. He has his eye on this for his Growth fund.


Price: $9.620
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-05-20 COMMENT Dream Industrial REIT
DIR.UN-T
Paul Gardner, CFA

A little better positioned than Pure Industrial REIT (AAR.UN-T), and the valuation is slightly cheaper. Even though they got bumps in their overall rents, it is still a very, very tough business. You would want to own this at the beginning of a cycle because you have a lot of alpha. With a recovery of a real estate market this would do quite well. This is a sector that he would not be in now.


Price: $8.640
Subject: FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias: BULLISH
Owned: No
2015-05-20 PAST TOP PICK easyhome
EH-T
Bruce Campbell (2)

(A Top Pick May 28/14. Up 3.55%.) Scratches his head a little bit with why this hasn’t gotten a little more respect from the market. They’ve generated some nice numbers. Have been working on trying to high grade their customers. Going back in history, they have had some huge loan loss provisions as part of their numbers, which has always made the street rather nervous. Thinks the numbers go higher over the next few years. The leasing side is not growing much; it is really the Easy Financing that is driving all the earnings growth.


Price: $20.300
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-05-20 COMMENT CGI Group (A)
GIB.A-T
Bruce Campbell (2)

Was down today because of rumours circulating that the company would be interested in Computer Sciences  (CSC-N). He understands that management had never been interested in those assets, so this is probably an opportunity. He is watching this closely and may get into this again.


Price: $52.950
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-05-20 BUY on WEAKNESS Knight Therapeutics
GUD-T
Bruce Campbell (2)

Had owned this in the past. If you believe in Jonathan Goodman, he has a phenomenal track record at Paladin. He is going to build a lot of value and is a large shareholder himself. In the short term he has a lot of cash, and people get nervous about what he is going to do with it. A bit of a black box at this time. However, some of the deals he has made so far have been phenomenally successful. Thinks the stock will go higher over time. His preference would be Concordia (CXR-T) or Merus (MSL-T), which have better opportunities. This is one he watches and would trade around. If he got a little bit cheaper he would probably buy it.


Price: $6.990
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-05-20 COMMENT American Hotel Income Properties
HOT.UN-T
Paul Gardner, CFA

Has US exposure and foreign exchange is helping. The hotel industry has outperformed over the last three quarters, which is not only coming from economic growth in Canada and the US, but also from foreign exchange exposure. There is some pricing power we are seeing in the hotel sector. Probably not a bad investment at this point.


Price: $10.740
Subject: FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias: BULLISH
Owned: No
2015-05-20 COMMENT H&R Real Estate Inv Trust
HR.UN-T
Paul Gardner, CFA

Getting too diverse for his liking. Good managers and they own a ton of assets. However, they own the US, they own residential, they own office and they own industrial. You have to deal with currency issues. He wants a pure play.


Price: $22.670
Subject: FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias: BULLISH
Owned: No
2015-05-20 BUY Inter Pipeline
IPL-T
Paul Gardner, CFA

Got hit a bit because of the drop in oil prices. It beat its numbers last quarter and is in the right growth profile. One of those great managed companies that not only manages its assets well, but is a pipeline that is not being interfered with. On a valuation basis, it is cheaper than it was 6 months ago but you still have the growth profile.


Price: $31.070
Subject: FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias: BULLISH
Owned: Yes
2015-05-20 COMMENT Keyera Corp
KEY-T
Bruce Campbell (2)

On his radar screen for his income fund. If prepared to own it for a few years, then this is probably a great entry point. They collect and look after midstream assets. As long as you believe they are going to continue to pump energy out of the west and it increases at some point, then the company’s assets are just going to continue to improve. Great cash flow and a nice yield.


Price: $41.850
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-05-20 COMMENT Loyalist Group Limited
LOY-X
Bruce Campbell (2)

(Market Call Minute.) Would be a little bit nervous on this right now. Have had some issues getting their audited financial statements done. The reason they gave is that their CFO was sick, but that always puts out a little bit of a red flag for him.


Price: $0.385
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-05-20 TOP PICK Mainstreet Equity Corp
MEQ-T
Paul Gardner, CFA

One of the cheaper stocks in the TSX. Trading at about a 20%-25% discount to its NAV. They own the mid-tier apartments (2 or 3 stories) in Edmonton, Calgary and Surrey. They have NOI (net operating income) growth of around 15%. They are refinancing and saving millions of dollars on financing costs. It is too cheap. It should be worth $45-$50. They are doing incredibly well in their numbers last quarter.


Price: $37.980
Subject: FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias: BULLISH
Owned: Yes
2015-05-20 COMMENT Martinrea
MRE-T
Bruce Campbell (2)

(Market Call Minute.) This has come up the ranks in his process. He has his eye on it. It might break out to higher highs.


Price: $13.600
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-05-20 TOP PICK NYX Gaming Group Ltd
NYX-X
Bruce Campbell (2)

The little cousin to Amaya (AYA-T) and Intertain (IT-T). They develop the actual games that Amaya and Intertain would use on their websites and mobile apps. Has been growing by acquisition, and just made another small one today. Also, had the acquisition from Amaya’s Cryptologic assets. When that was announced, the stock sold off by about 15%, because the market was concerned about an equity issue. They are certainly going to have to raise some money from an equity standpoint as well as from a debt standpoint. He doesn’t know how that equity looks right now, but chances are that when it does get announced it could either be a private placement or a bought deal, and chances are it’s going to fly off the shelf. If you want to position yourself ahead of that, he thinks it is a pretty attractive valuation. Trades at great free cash flow yields and management owns about 40% of the stock.


Price: $4.460
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-05-20 COMMENT Prometic Life Sciences Inc.
PLI-T
Bruce Campbell (2)

This has 2 different businesses. 1.) Manufacturing, their plasma base. 2.) Orphan drugs. Sees both sides of the business growing. Looks at the manufacturing as a “steady Eddie”, and it is really going to grow over the next few years. Have a number of companies they are currently selling plasma to, who are in different levels of clinical trials with the FDA. If some of these got approved, the amount of plasma needed will really ramp up. Also, 2 or 3 of their drugs could be fairly significant blockbusters that they may hold for cash flow or selloff. Has his eye on this.


Price: $2.500
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-05-20 COMMENT Pine Cliff Energy
PNE-X
Bruce Campbell (2)

At some point in time it might become a take over candidate. Very well-run. Thinks they will continue to do what they did with Bonterra (BNE-T) in oil, building and buying production in natural gas when it was out of favour. If you are a long-term player, you want the natural gas price to stay low, allowing them to make all kinds of acquisitions. When the natural gas price goes up, that may be when we get a couple of LNG projects or a pipeline, and at that point in time you will really start to see the value in the company. In the meantime they have a low decline rate and are generating a nice cash flow.


Price: $1.540
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Unknown
2015-05-20 COMMENT Petrowest Corp
PRW-T
Bruce Campbell (2)

Just had some news in the last few days of the breaching of some debt covenants, where the bank has given them some relief. This kind of indicates how bad the slowdown is, considering their work is not directly involved in oil/gas. Didn’t get awarded the initial earthmoving contract for the Site C project, but are in a consortium that is bidding in another part of the project. There is a good chance they are going to get some work there. Also, anything that happens with LNG will obviously be popular and help them as well.


Price: $0.340
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Unknown
2015-05-20 COMMENT Quantum International Income Corp
QIC-X
Bruce Campbell (2)

A really interesting little company. Pretty small, but reminds him a lot of Nobilis Health (NHC-T), which was a Top Pick in the past. Have bought some ambulatory surgical centres in the New York State area, and they are going to continue to roll those up. These are typically started by doctor’s groups and are not very profitable. This company buys these and turns them around making them profitable. Still very much in its infancy and thinks there are probably still a few acquisitions for them to go. Expects there will be a fair amount of news flow coming out over the next several months.


Price: $0.390
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-05-20 DON'T BUY Pure Multi-Family REIT LP
RUF.U-X
Paul Gardner, CFA

This buys apartments and residential homes in the US. He loved that space up until a couple of months ago because of the recovery in the US housing market. There is some association with Pure Industrial REIT (AAR.UN-T), and he wants them to do one thing and one thing only. He would avoid this.


Price: $5.240
Subject: FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias: BULLISH
Owned: No
2015-05-20 DON'T BUY Sherritt International Corp.
S-T
Paul Gardner, CFA

Would you buy their 8% - 2017 bond? He likes the bond side, simply because when they owned the Saskatchewan metallurgical coal deposits, if Cuba and Madagascar failed, he would at least have an asset that he could grab and would make him whole. They have since sold the Saskatchewan holdings and are now left with Madagascar and Cuba, so you are now dealing with the underlying commodity price that keeps rolling off. The bond is being offered out at around 9% in today’s market, which tells you it is distressed. High-yield bonds should be trading at around 7%. Secondly you are going to have to deal with Madagascar, where the operations seem to be coming on, but there was a big delay.


Price: $2.540
Subject: FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias: BULLISH
Owned: No
2015-05-20 COMMENT TheScore Inc.
SCR-X
Bruce Campbell (2)

If you are prepared to tuck it away over the next year or 2, he thinks it is going to continue higher. Have obviously done a great job in sports apps, but now are getting into the high video gaming business, which is a huge market. Also, the fantasy sports market is really taking off in the US and globally. This always seems to trade with fairly significant valuations, but management has always executed very well. Management has recently been buying stock.


Price: $0.680
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-05-20 COMMENT Sensio Technologies Inc.
SIO-X
Bruce Campbell (2)

Was a Top Pick April 23/14, and he is probably more excited now than he was then. Since then, they have signed deals with LG and Samsung. By the end of this year they are going to have about 80% of the addressable 3-D market that can access their app and rent movies from their 3-DGo service. The number of registered users continues to ramp up. Management has been very strong at cutting back their costs and still growing their business. 2 of their focuses right now are 1) building out their libraries, where they sign more deals with the studios, and 2) seeing the integration of Samsung. Expects that a year from now there will be some fantastic numbers. At some point he expects they will be acquired because it is basically going to be the 3-D version of Netflix.


Price: $0.230
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-05-20 STRONG BUY SLYCE Inc.
SLC-X
Bruce Campbell (2)

He was involved in their recent financing. Just signed another deal and continues to roll out this mass of different retailers that are using their app. As they roll out more and more retailers, it means they are going to receive a lot of income. They receive income in a number of different ways, via service agreements, on a “per picture” basis and a fraction of the purchase price. Have been very successful with some of their initial launches. This is a steal at this price.


Price: $0.530
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-05-20 PAST TOP PICK Sprylogics International
SPY-X
Bruce Campbell (2)

(A Top Pick May 28/14. Up 54.76%.) Has a breaking sports app which is pretty unique. It was rolled out in March and there were huge numbers of downloads through March and April. They could probably be through the $500,000 mark by the 2nd quarter. Going into the 3rd quarter, it might even touch $1 million. A similar model to TheScore (SCR-X) except for the valuations, which is significantly cheaper.


Price: $0.640
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-05-20 HOLD Student Transport of America Ltd.
STB-T
Paul Gardner, CFA

3rd largest provider of student bus services in the US. They are about to pay most of their dividends in US$’s. Even though they met estimates on EBITDA, their margins were impacted which is why it got hit. A good free cash flow business with a good yield of about 7%. They benefited from low fuel costs, and there is a feeling they are going to get some contract wins coming up in the next couple of quarters. He would want to see their EBITDA and margins stabilize before he would get excited about it.


Price: $6.180
Subject: FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias: BULLISH
Owned: No
2015-05-20 PAST TOP PICK Timbercreek Mortgage Investment
TMC-T
Paul Gardner, CFA

(A Top Pick May 5/14. Down 3.53%.) The trouble was repayment issues last year. They lend short-term to developers. They are underinvested, which hurts their bottom line. They have kind of solved that problem and it is cheap, trading at a 10% discount to its NAV. The mortgage market is still earning a very good rate of return on a risk adjusted basis. He thinks this does recover and does well over the next year.


Price: $8.180
Subject: FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias: BULLISH
Owned: Yes
2015-05-20 TOP PICK Vogogo Inc.
VGO-X
Bruce Campbell (2)

In the payment processing for crypto currencies. One of those things that is extremely hard to understand. The management team actually did all the payment processing in the gaming business before, and so they have been through all this with online poker and have built a great track record. Just at the point now where they are rolling out some of the merchants. Management feels they could be processing $5 million per day by the end of this year, and a year from now processing $10 million per day. They get a 1% fee for generating that, and about 60%-70% flows to the bottom line. Only 40 million shares are outstanding and this could be extremely profitable by the end of this year.


Price: $2.800
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-05-20 COMMENT Wi-Lan Inc.
WIN-T
Bruce Campbell (2)

One of the biggest reasons he has had a tough time with this is that their numbers tend to be fairly lumpy. As they get these patent awards, the numbers really come through. And then there will be long periods where nothing happens. Underlying cash flow seems to be pretty secure. This is a stock that you really want to trade around. When it gets sold off by the market, that is the time to buy, and then when it gets bid up after they signed a couple of deals, it is probably the time to sell.


Price: $2.490
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-05-20 COMMENT BitGold Inc
XAU-X
Bruce Campbell (2)

(Market Call Minute.) He would be careful of this one at this time.


Price: $6.140
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-05-20 TOP PICK Canadian Satellite Radio
XSR-T
Paul Gardner, CFA

(A Top Pick May 5/14. Down 19.03%.) Incredibly cheap relative to its US parent which is trading at 16X EV to EBITDA. Trades at 11 times. Beat their numbers last quarter. Making really good headway in the used car market. A free cash flow entity that keeps churning out a lot of money. Earnings are all right but the biggest challenge is the royalty fee they have to pay to the music industry, which causes a heightened level of churn. They seem to have a handle on that. Poised to go back to the $6-$7 range.


Price: $5.490
Subject: FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias: BULLISH
Owned: Yes
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