Let's take a look at some results released lately. I own these four stocks and I believe strongly in them. They all beat expectations by at least 10% and they all have a good or great balance sheet. They all represent about 5% of my portfolio. Plus, there's an ugly stock that I'm ashamed of, because I've been a shareholder in the recent past. I've however sold everything without a monumental loss.
Tucows: The last results were great (EPS = 0,39$ VS 0,35$ expected). On the day of the release, the price of the stock went up something like 8-10%. Then, the next day, it went down the same percentage. And the following days, the price kept going down for no apparent reason. The actual price of the shares is lower than it was one month ago. Am I missing something? For me, it's one of the best picks in the market right now (ROE = 47 and forward PE = 16). However, the debt is growing to my limit of comfort (nothing alarming however).
Hardwoods Distribution: Pretty good results once again (EPS = 0,32$ VS 0,29$ expected).
This is my lowest ROE stock (after Knight Therapeutics), but the performance is great and management seems pretty solid. They also made a big acquisition recently.
Knight Therapeutics: This one is harder to evaluate because this company is mainly a company full of cash, without a lot of earnings (the last results were 0,04$ EPS VS 0,03$ expected... for a stock priced at 8,20$). But their cash pile is pretty high. Sooner or later, they'll do something great with all that money.
Linamar: The last results were excellent (EPS = 2,39$ VS 2,16$ expected). I never understood why the price of the shares that was already pretty low went down something like 20% in the last months. The company achieved a ROE of 27 and the forward PE is about 9. It's a great pick. The margin of security is high here.
THE SUPER UGLY STOCK IN THE MARKET
Concordia Healthcare: Oh my god. What a terrible stock and an even worse management. Mark Thompson is looking pretty bad with his suing of Marc Cohodes. Plus, many comments on stockhouse are saying that the last conference call was the worst they ever heard and Thompson looked on drugs (I didn't heard the CC because I'm not interested anymore in the company). Let's say that a loss of 11,18$ per share is an incredibly awful performance. Forget all that fucking shit about their adjusted EPS of 1,38$. If that fucking business can transform an incredible loss in some earnings, Mastercard could transform their incredible earnings in some giga fucking earnings. Why great companies couldn't be as creative as bad companies?
Who fucking cares about imaginary money? That's all that fucking Concordia is able to earn: IMAGINARY MONEY.
The summum of bullshit is their cut of the dividend because "the Company believes the dividend payments can be better deployed
towards long-term value-creating initiatives or debt repayment."
I hope everybody is clever enough to understand how things are going badly in this company with such a move. They started the dividend when the business had way less earnings and now, they cut it even if their sales are supposed to be something like 100 billion percent higher than 3 years ago.
That management doesn't have any credibiliy anymore. I understand why Jason Donville keeps himself far from the cameras of BNN these days. He probably doesn't want to see his performance being exposed to viewers, particularly for such a crappy stock.