HodginsHere are all the details. First stock in the clip and two sets of comments. As can be seen, it's also one of the top holdings in his fund.
https://www.bnn.ca/video/james-hodgins-top-picks~976702
TOP PICKS
MERUS LABS (MSL.TO)
Merus is currently trading at 4x EBITDA with lowest cost of capital in the sector due to their EURIBOR plus four per cent credit facility. Stock has been unfairly hit due to similarities with Valeant and Concordia, although we believe there is a big difference in the quality of management and MSL has a significantly better balance sheet. Our one-year target is $2.00, although we see much higher prices as management executes on its growth strategy.
MSL-T2016-10-20TOP PICKJames Hodgins
They did not take on all the debt of some others. It is in Europe. When US drugs come off patent, it is a patent cliff. In Europe it is different. It tends to be about 30-40% because it is more highly regulated to begin with. Their earnings are more stable. He likes the management team who have been buying stock recently. They changed from just buying legacy drugs to buying growth drugs. He thinks this growth strategy will cause a re-rating of the stock.
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Price:
$1.260
Subject:
MARKET NEUTRAL INVESTING: SMALL/MID-CAP
Bias:
NEUTRAL
Owned:
Yes
FUND PROFILE: CURVATURE FUND LP
PERFORMANCE AS OF: SEPTEMBER 30, 2016
•1 month: Fund 1.51%, Index* 0.88%
•1 year: Fund 5.91%, Index* 10.68%
•3 year: Fund 8.12%, Index* 4.82%
*Index: S&P TSX
TOP HOLDINGS AND WEIGHTINGS
1Burford Capital: 3.01%
2Fairfax Financial Holdings: 1.87%
3Clearwater Seafoods: 1.72%
4Merus Labs International: 1.71%
5Thompson Creek Metals: 1.61%