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!
vendredi 30 janvier 2015
samedi 3 janvier 2015
Good growth for a good price
Some fucking asshole on Motley Fool has written that he is making fun of my grammar on this blog. FUCK YOU CUNT! My grammar is immaculate as snow in Nunavut. Only a few spots of polar bear piss here and there. Except for that, everything is pure and beautiful on this blog.
Ok, now I want to write a little about some serious shit that I think could boost the value of my shares. I plan to get richer in 2015, so I think I'll take advantage of this blog by pumping my shares as much as I can. The best way is to expose a nice angle of these shares to convince people that they should buy these shares too and talk about them with all their entourage. One of these days, the PE ratio of my shares may explode because, as we all know, humans are stupid and do the same thing as everybody does.
So, with all these people out there that say that the market is correctly priced and we should be cautious, let's take a look at some businesses that still offer good growth at a good price.
Vecima Network (VCM.TO)
5 last years annual EPS growth: 14%
Forward PE ratio (2015): 8
Return in equity last 5 years: 9% (improving these last quarters: it's now around 16-17%)
Cipher Pharma (CPH.TO)
5 last years annual EPS growth: Not avalaible because profitability wasn't there 5 years ago. However, annual sales growth have been 77% for the last 5 years.
Forward PE ratio (2015): 12
Return in equity last 5 years: 32%
CGI Group (GIB-A.TO)
5 last years annual EPS growth: 22%
Forward PE ratio (2015): 14 (watch out for a big acquisition in 2015... this ratio should go higher)
Return in equity last 5 years: 15%
Dorman Products (DORM)
5 last years annual EPS growth: 35% !
Forward PE ratio (2015): 16,5
Return in equity last 5 years: 20%
Portfolio Recovery and Associates (PRAA)
5 last years annual EPS growth: 28%
Forward PE ratio (2015): 12
Return in equity last 5 years: 19%
Priceline (PCLN)
5 last years annual EPS growth: 57%
Forward PE ratio (2015): 18,5
Return in equity last 5 years: 40%
Disclosure: I own shares of all of these companies except Priceline. Fuck you.
Ok, now I want to write a little about some serious shit that I think could boost the value of my shares. I plan to get richer in 2015, so I think I'll take advantage of this blog by pumping my shares as much as I can. The best way is to expose a nice angle of these shares to convince people that they should buy these shares too and talk about them with all their entourage. One of these days, the PE ratio of my shares may explode because, as we all know, humans are stupid and do the same thing as everybody does.
So, with all these people out there that say that the market is correctly priced and we should be cautious, let's take a look at some businesses that still offer good growth at a good price.
Vecima Network (VCM.TO)
5 last years annual EPS growth: 14%
Forward PE ratio (2015): 8
Return in equity last 5 years: 9% (improving these last quarters: it's now around 16-17%)
Cipher Pharma (CPH.TO)
5 last years annual EPS growth: Not avalaible because profitability wasn't there 5 years ago. However, annual sales growth have been 77% for the last 5 years.
Forward PE ratio (2015): 12
Return in equity last 5 years: 32%
CGI Group (GIB-A.TO)
5 last years annual EPS growth: 22%
Forward PE ratio (2015): 14 (watch out for a big acquisition in 2015... this ratio should go higher)
Return in equity last 5 years: 15%
Dorman Products (DORM)
5 last years annual EPS growth: 35% !
Forward PE ratio (2015): 16,5
Return in equity last 5 years: 20%
Portfolio Recovery and Associates (PRAA)
5 last years annual EPS growth: 28%
Forward PE ratio (2015): 12
Return in equity last 5 years: 19%
Priceline (PCLN)
5 last years annual EPS growth: 57%
Forward PE ratio (2015): 18,5
Return in equity last 5 years: 40%
Disclosure: I own shares of all of these companies except Priceline. Fuck you.
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