Top PickLast stock in the clip and two sets of comments. GLTA
https://www.bnn.ca/video/jason-del-vicario-s-top-picks~1042628
PACIFIC INSIGHT ELECTRONICS (PIH.TO) Each appearance, I try to highlight a company that is small yet meets our selection criteria. Pacific Insight designs, develops, manufactures and delivers solutions to the automotive and commercial vehicle markets. Their main products are LED lighting systems. Their clients are well known and include Ford, Tesla and Caterpillar, to name a few. PIH doesn’t have the high ROE history that we like to see, but their cash ROE is above our minimum threshold and trending higher. While we haven’t done a lot of research into the demand profile for their products, we do note that their revenues have jumped twice recently, in 2013 and 2015 to present. Their last quarter was weak due to some one-time costs associated with a product launch, and the stock sold off sharply from nearly $15 down to $7 and looks to have stabilized around $9. They are also very reasonably priced trading at 7.5 times trailing earnings. This obviously shouldn’t be a large percentage of one’s portfolio, but we think that if they can get back to the financial performance of 2016 (they’ve given every indication this will happen) then we like the risk/reward relationship at these levels. PIH-T 2017-01-24 TOP PICK Jason Del Vicario
Based in British Columbia. They have a high ROE, although they haven’t had a history of it for the length of time that he would like to see. This makes the LED lights that you see in cars. Some of their customers include Ford (F-N), Caterpillar (CAT-N) and Tesla (TSLA-Q). The last earnings report was weak because they had some upfront costs launching a new product for a customer, which reduced margins. Thinks they can get back to their highs of $15, and go beyond that if they can continue to grow their earnings with a high ROE.
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Price:
$9.720
Subject:
NORTH AMERICAN (GROWTH)
Bias:
CAUTIOUSLY OPTIMISTIC
Owned:
Yes