ROE Reporter - January 2015

At the end of each quarter (beginning in january), Jason Donville releases his ROE reporter newsletter. The edition of january is always the most interesting of the year because some great companies are proposed for the year to come. The propositions are mainly based on a ratio ROE/PE.

You should read it. It's short and interesting.

I own 4 of the 5 companies that are recommended in the document for january 2015 which was released today (I'm such a fucking fan that I wander on the website each day at the end of each quarter hoping for some release).

Among the 5 recommandations, I own Home Capital Group, Constellation Software, Valeant and CGI.

I don't own Badger Daylighting which is the fifth recommandation but I have been interested in the name for a couple of years. I'm also interested in Auto Canada, but this company is much too exposed to the economy of Alberta (I guess that Badger is exposed a lot to the economy of Alberta too). The results of Badger are also a little erratic. So, I'm not convinced that it's such a great choice.

I may be wrong, but I would avoid anything that is too much related to the state of economy in Alberta these days. Buy a car is surely not the thing that comes to mind to all the people that lost their job in Alberta recently. And maybe that digging holes in the ground in Alberta is not very popular too.

Nevermind. It's 4/5 for me, which is a pretty good number. Watch out the list of good ROE/PE and maybe you'll find something that will make you rich one of these days.

Let's see the recommandations of each year since 2010:

2010
Constellation Software
Paladin Labs
MTY Food Group
Logibec

2011
Constellation Software
Home Capital Group
Glentel
MTY Food Group
Paladin Labs

2012
Constellation Software
Home Capital Group
CGI
Glentel
Paladin Labs

2013
CGI
MacDonald Detwiller
Home Capital Group
High Liner
Paladin Labs
Constellation Software

2014
Constellation Software
MacDonald Detwiller
CGI
Home Capital Group
Valeant

These recommandations were not all home runs, but not a single one was a failure!