RE:Jason Donville, 30% ROE target, short reportDonville, although a good stockpicker especially of small caps, embarassed himself with Concordia as a pick. A short report came out on Concordia and he quickly appeared on BNN and claimed that the short was garbage and the company had great potential and then ripped up and down BNN for broadcasting the short report and not questioning it.
He was famously wrong and the stock basically crashed. Hasn't been on since.
His fund is closed to new money and it continues to do well, begging the question why would he go on TV anyways?
As for the short report on CRH, it made reference to changing reimbursement rates...which actually didn't and aren't about to happen. It also made reference to shady accounting...except that the accounting the company provides is actually what you have to do to follow GAAP rules. The company responded quickly and took apart the short thesis one by one. Analysts following the name commented on how weak the short report appeared to be compared to others that have come down . But this is a tiny Canadian healthcare company and the quick money evaporated and hasn't come back.
The stock is actually in a good position now, basically the balance sheet is very strong because the cash they generate is so high. They pick their acquisitions carefully. They have expanded and lowered the rates on their lines of credit. They are essentially locked and loaded for acquisitions over the next 12 months. They have basically no competition at this point.
Donville said that this company is one of the great ones that could be $25 in the next 5 years and he is correct. You'll notice any shorts in the name are rookies who are probably just looking at the chart and piling in. But it should be a rewarding two or three years. Just my two cents.