Jason DonvilleHere are all the details; second stock in the clip. As can be seen, CXR is also one of the top holdings in his fund. I also included his comments on what has happened recently to the sector. GLTA
Jason Donville, president & CEO, Donville Kent Asset Management
FOCUS: Growth Stocks
MARKET OUTLOOK:
Rather than talk about the general market outlook, I want to address the recent correction in health care stocks. Why have health care stocks sold off so aggressively over the past 60 days in the absence of any meaningful downward earnings revisions? While the industry wrestles with issues ranging from drug pricing to leverage, the sell-off has still been far greater than was warranted by any change in the fundamentals. Our investigations suggest that, as the sector began to correct in mid-summer, three different market participants were hit particular hard and therefore experienced aggressive forced selling. By far the biggest forced seller was retail investors who bought health care stocks on margin. This selling has been massive over the past 45 days and is only now starting to abate. The other two “forced” sellers have been ETF’s and Volatility funds, each of which were forced to liquidate large positions when the sectors momentum profile suddenly changed. These three groups of forced sellers, all of which need to sell quickly, led to an exaggerated correction which has knocked back many health care stocks by more than 50 percent in two months. Given the lack of meaningful earnings revisions throughout this correction, we believe the “real story” behind the correction is more about liquidity and volatility than earnings. If our thesis is correct, then the US health care ETF’s like the IBB will bounce back quickly and smaller names in the sector will follow shortly thereafter. For investors who are long the sector but feeling beaten up, our advice is to hang in there.
https://www.bnn.ca/Video/player.aspx?vid=730295
Fund Profile
Capital Ideas fund
Performance as of:
Fund Index*
1 Month -7.03% -3.7%
1 Year 8.02% -8.38%
3 Year 25.19% 6.29%
**Includes reinvested dividends & is net of all fees
Top 5 holdings and weightings:
Constellation Software: 12.7%
CGI Group: 9.2%
Enghouse: 8.2%
Concordia Healthcare: 6.1%
Open Text: 4.9%
| CXR-T |
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2015-10-19 |
TOP PICK |
Jason Donville |
Trading at 4X earnings and at about 9X his estimated 2016 BV. Yes it is levered, but at 4X earnings and below BV, that issue is baked in. Thinks the stock goes higher or somebody comes running at it. CEO is a good guy that made a mistake with the financing. The sharks are going to come if the stock sits at $43.
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Price:
$43.070
Subject:
GROWTH STOCKS
Bias:
UNKNOWN
Owned:
Yes |