Fabrice Taylor- Way overrated Check out EL on TSX-V. Rated a buy by Fabrice not that long ago on April/9/2015 at $.65 and is now trading at $.28. Just one of many losers.
Fabrice Taylor, publisher, the President’s Club Newsletter
FOCUS: North American Equities
MARKET OUTLOOK:
We are now a little more than 6 years into the bull market which is to say the late innings or potentially extra innings of the ball game. Signs of a market top are in evidence - stretched valuations, investor exuberance, low dividend yields, limited profit growth. It will end soon inevitably and investors need to be prepared for that. A market correction is not a terrifying occurrence if you’ve raised cash. It’s an opportunity because most of your returns from the stock market are made by being early to buy and early to sell. You can’t buy into the next cycle early if you didn’t harvest your cash at or near the top. Have a healthy cash balance.
Top Picks:
Loyalist Group (LOY.V 0.00%)
Most recent purchase was last month at $0.40.
Loyalist Group is an operator and consolidator of English as a second language schools in Canada. Its students come from overseas and stay for a few months to a year. The school business is doing very well and ready for strong growth top-line which should increase profits and profit margins. But the company has a hidden asset that gets zero respect in the market but that has the potential to create enormous value: student housing. All of Loyalist's students need a place to stay. Currently, they find their own lodgings. Loyalist has dabbled in the housing business but has gotten very serious about it now and plans a very aggressive launch of a housing subsidiary that I believe will be dividend out to LOY shareholders this year. The housing will be a once-in-a-generation opportunity because the students are captive and because they don’t stay long they don’t really care what they pay for rent. So the housing sub will trade a huge premium which will make it easy to acquire in an accretive fashion. By buying LOY today investors get the school business for a very good price and a very attractive real estate opportunity for free. My most recent purchase was last month at 40 cents.
Engagement Labs (EL.V 9.62%)
Most recent purchase was this week at $0.65.
Engagement Labs is trying to become the standard for measuring the return on investment in social media advertising. As we know from success stories like Facebook, eyeballs are moving to social media. Advertisers will naturally follow them there. But wherever advertisers go they want a yardsticks and guideposts to help them figure out where to advertise, how much to pay for the ads and what their return is. Nielsen ratings helps companies do this in broadcast media (it’s a $4 billion company). Com score does it in digital for website advertising. It’s a $2 billion market cap company. Engagement Labs is hoping to become the go-to name in mobile with their flagship eValue measurement tool. It’s very early days but they’ve delivered some good contract wins and have an excellent management team and prestigious advisory panel so I think they have a shot at it. It’s on the riskier end of the spectrum but has the potential to be a big winner. My most recent purchase was this week at 65 cents.
Imperus Technologies (LAB.V 25.00%)
Most recent purchase was this week at $0.48.
Imperus Technologies is a gaming company that acquired an Israeli publisher of online fantasy games, including some well-known brands like Best Casino. The gaming business has roughly 50 percent EBITDA margins and 25 million users. The growth opportunity lies in migrating those users to the company’s new mobile platform (tablets and phones as opposed to computers), creating new games, acquiring new games or game publishers, and monetizing the user base by, for example, cross-selling to actual gambling sites. Gaming is a very attractive space and obviously never goes out of style. It’s an addictive pursuit and therefore very lucrative, and technology has vastly increased the opportunity for people to play, and therefore the opportunity for profits. My most recent purchase was this week at 48 cents.
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Disclosure:
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Personal
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Family
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Portfolio/Fund
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LOY.V
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Y
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Y
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n/a
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