RE:RE:RE:RE:James Telfser's Top Pick Tonite on Market CallA few more details. Second stock in the clip + an additional set of comments. Also, as can be seen, it is the largest holding in his fund. GLTA
https://www.bnn.ca/Video/player.aspx?vid=814933
It is hard to believe that Concordia is trading at the levels we see today given what the business has transformed into over the past couple of years. Since becoming a public company, Concordia has effectively broadened both its product platform and geographic footprint, generating significant earnings growth in the process. For example, the consensus expectation for 2016 EBITDA is $860m which is roughly 11x higher than 2014 EBITDA of $78m. The acquisitions executed to achieve this growth have resulted in a large debt load, but it is manageable in our view given the high margin nature of the business. Leverage aside, this is a healthy, diversified business run by smart management that produces a considerable amount of free cash flow. Even assigning Concordia a conservative valuation multiple to account for the debt load, our internal EPS projection highlights the shares as 50 percent undervalued. At 4x 2016 EPS, Concordia is trading at a multiple reserved for companies going out of business, which is certainly not the case. Total Return Average: -9.91 percent
Fund Profile
Aventine Canadian Equity Fund
Performance as of: January 2016
1 Year: Fund 5.50 percent, Index* -9.90 percent
Since Inception – Annualized (March 31, 2014): Fund 6.10 percent, Index* -3.10 percent
* Index: S&P/TSX Composite Total Return Index
* Returns include reinvested dividends and are net of fees
Top 5 holdings and weightings:
Concordia Healthcare - 7.4 percent
Clearwater Seafoods - 6.6 percent
Goeasy - 6.2 percent
Tricon Capital - 4.8 percent
Winpak - 4.5 percent