samedi 10 septembre 2016

Not a glorious time for Donville Kent

Jason Donville must have been pretty disappointed in 2016. His performance has probably never been this bad.

His major mistake has surely been to pick stocks with obscure accounting practices and/or a short track record. If he had stuck with stocks using usual accounting practices, he would have got a much more decent performance.

Let's see Jason Donville's picks on august 25th 2015 (performance of the stocks since then is indicated besides):

Top picks:
CRH Medical 36%
MTY Food Group 34%
Valeant -87%

Total return top picks:-17%

Stocks rated as a buy, or positive comments:
Constellation Software 6%
Ten Peaks Coffee -11%
Tucows 12%
Rifco -27%
Pivot Technology -14%
Patient Home Monitoring -68%
Neulion 57%
CGI Group 35%
Concordia Healthcare -89%
Nobilis Health -21%
Acerus Pharmaceuticals -54%

Total return buy or positive comments:-16%

7 commentaires:

  1. Ouch!!! Not one swear word in the article, are feeling ok?

    1. Yeah. Pretty weird to get an effect without any punch.

  2. The blog is: don't fuck with donville.

    This article's real title: FUCK DONVILLE!

    I have been waiting for this blog entry. Some money managers are honest about their mistakes. Donville tries to sweep them under the rug. People have lost a lot of money lately if they followed him. It's much worse than it looks because if you saw Donville on tv, you bought Concordia as one of his top picks. He pushed that stock very hard arguing they have enough cash flow to pay back their debt. As a pro money manager, he should have seen past the clever accounting and the debt level should have scared him away. It was deja vu all over again. He had made the same mistake with Valeant and did not learn.

    If investors start to get scared, they will prefer defensive stocks and shy away from growth stocks. Unless the growth stocks Donville is picking today have very low p/e multiples, he may continue to do poorly for a while longer.

    1. Yeah, the original title of that post was something like "To fuck with Donville". You're pretty clever my friend.

  3. Yes, pretty bad performance for 2016 YTD but over 8 years he has compounded at 20%+ net of his large fees, not bad at all.

  4. Yup. I am a bit dissapointed that he wasn't upfront with CXR.

  5. He should pay more attention to debt when analyzing companies. It's not only ROE, adjusted earnings or FCF, it's also Enterprise Value, short-term debt or interest coverage. IF something goes wrong at least you have a parachute.