Post by
retiredcf on Jul 22, 2015 1:14pm
Euro Pacific Top Picks
We are pleased to follow up with our mid-year review of our 2015 Top Picks. The Research Team took the opportunity to review their original submissions and make changes where either the relative performance of coverage names or changing fundamentals warranted a revision.
The Telecommunications sector noting the S&P/TSX Capped Telecommunications Services Index returned 5.06% YTD, superseding the larger (and US-based) S&P 500 Telecommunications Index, which returned 1.23% on the same YTD basis. Our two names Espial and DHX Media are not directly telecom providers themselves. However, both are direct benefactors of the intense competition between cable and telco providers and in turn OTTP providers featuring Netflix (NFLX:NASDAQ, NR) who was incidentally ahead 126.5% for the YTD....................
Espial Group Inc. (ESP-T, Buy, $5.10 PT): ESP’s YTD share price performance of 82.5% remains well ahead of our benchmarks. We continue to believe the Company’s RDK/HTML5 product suite will be successful gaining share within an increasingly short adoption window across the global video providers. We have been encouraged by the Company’s two announced core RDK/HTML5 contract wins over the year to date. We have been further encouraged by the product expansion potential reflected in the Orange (ORA-FP, NR) contract to supply software on its new “Chromecast”-like product.