Let's pump two new purchases

Hi there dear investors from all around Canada. From Yellowknife to St-Raymond de Portneuf. You, cupid assholes.

Today, I've made two brand new purchases. I've bought two companies that are unknown to a lot of investors out there. You have to go to stockchase dot shit to see some analysts talk about these but you won't see a lot of opinions.

By the way, even Jason Donville has stated an opinion about these stocks lately. He was positive. And what I've read on the Internet about these stocks makes me positive too.

Callidus Capital (CBL.TO)

Market cap: 830 millions $
Forward PE ratio: 10
Industry: Financial services to companies that have difficulties
Very strong growth
Jason rating: buy
% of my portfolio: about 1,5%

Novartis Health (NHC.TO)

Market cap: 250 millions $
Forward PE ratio: 11
Industry: Healthcare services (they've recently bought an hospital in the US)
Very strong growth
Jason rating: speculative buy
% of my portfolio: about 2%

I now have 16 stocks in my portfolio. I've tried hard to find something to sell because I try not to exceed 15 stocks in my portfolio. But I couldn't find anything to sell. And I wanted to have small positions in these two stocks to begin. You never follow something too close until you invest in it.

So, let's follow these two stocks. I'm pretty confident that at least one of these two will get very good results in the next weeks. 

Healthcare stocks, once again

The appreciation of the S&P 500 is almost flat since the beginning of the year. However, some healthcare stocks have performed very well.

I have three stocks in my portfolio that dit well since the beginning of 2015. Each of those have recently made a big acquisition that have had a nice impact in the value and price of the shares.

I’m still convinced that the best thing somebody could do is to constitute a portfolio of 10-15 great healthcare stocks. You’ll get a low beta, predicable earnings and almost certainly a general long term appreciation.

Don’t buy stocks with promising products but no earnings. Buy stocks that have a lot of cash and generate a lot of cash.

Here’s my three companies that performed well and have made a big acquisition in the last 2 weeks :

Valeant : 50% appreciation since the beginning of 2015 (Salix : 14,6B$ acquisition recently)

Concordia Healthcare : 40% appreciation since the beginning of 2015 (Ikaria : 1,2B$ acquisition recently)

Mallinckrodt 23% appreciation since the beginning of 2015 (2,3B$ acquisition recently)

And here’s two other stocks in which I still have a lot of confidence for the year ahead : Gilead (GILD) and Cipher Pharma (CPH.TO). They haven’t made an acquisition yet, but it may be the case soon. They both have a very high ROE and a lot of money in hand.

Sequoia Fund goes Constellation Software

Holy fuck, what a consecration!

Today, I've discovered that Sequoia Fund, one of the best funds in the world, has initiated a position of about 110 millions dollars in Constellation Software (at today's price but they probably paid less than that).

That company buys almost only A1 management teams. I think they're a little late to the party (I've bought my first shares around 90$ each and the price is now around 430$) but if they join, I'm confident to keep my shares longer even if I trimmed my position a few weeks ago.

Is Jason Donville responsible for that? I don't know. But I haven't heard of a lot of analysts talking about Constellation Software. So, I maintain my opinion: Jason has brought Constellation Software to the popular conscience. And the popular conscience has crossed the border and went to some of the best investors in the world.

Take a look at the top 6 stocks of Sequoia Funds and you'll only see great companies with a very good track record:

1- Valeant (23%)
2- TJX (9,6%)
3- Berkshire class A (9,5%)
4- Fastenal (5,9%)
5- Berkshire class B (5,4%)
6- O'Reilly Automotive (4,5%)

Constellation Sotfware ranks well below with about 1,1% of the fund.

Jason has recently said to buy Constellation Software and the guys at Sequoia just did it too.

With the current PE ratio, I'm not so sure if you should buy. But you surely shouldn't sell 23% of your shares like I did.

Why I invest my money in the stock market

Why do you invest in the stock market?

Probably to have a chance to get rich someday. I don't see a lot of valuable reasons to invest money in stocks. Actually, I see no reason at all except for that.

But I think my reason is a little bit more original than that.

I invest money to get the fuck out of here. I'm so fucking bored about humankind, job issues, civilization, medias, etc. I just want to have the freedom to décalisse where I want, when I want. I want to get rich to be able to do what I want as soon as possible.

Let's face it. Most of us can't do what we want to do. We'll all spend 30 or 40 fucking years of our lives in a job that we don't like, in a fucking subpolar environment where we can enjoy the weather 20 days per year. We'll pay a lot of taxes for a lot of things that we don't use at all. How can you be happy when you realize that???

If I'm rich one day, I'd be a fucking globe trotter and I'd spend my life all around the globe, eating anaconda in Bolivia, eating human flesh in some fucking cannibalistic african tribe, shitting and drinking at the same time in the Ganges in India, etc. I'd be anywhere but here.

MAN, I'M SO FUCKING TIRED ABOUT MANKIND.

PLEASE JASON, GIVE ME THE OPPORTUNITY TO OPEN A FOREIGN OFFICE FOR DONVILLE KENT IN SOME FUCKING TROPICAL PLACE FAR AWAY FROM HERE. 

I've had it in the ass with Rifco

Have you seen the last results for Rifco?


It's bad as shit. Earnings are half what they were last year. In fact, you just have to read the first 10 lines of the results and you'll see that something stinks a lot. I think I could say that SOME THINGS stink.


So, this morning, at around 9:40 AM, I sold all my shares of Rifco. I've sold all of them at about 50% of my purchase price, which means a great loss. I simply couldn't see how things could get better in the year ahead. I'm pretty sure that the price of the shares will decline a lot in the next few weeks but I don't have any intention of buying it back in the coming months.


Rifco was one of the only Venture stock in which I had faith.


Now, one of my rule of investment will be to avoid the venture because companies listed there almost never have solid kidneys (les reins solides, comme on dit en français).


Fuck the Venture. Fuck Loyalist Group, Fuck Macro Enterprises, Fuck NTG Clarity Networks and now, Fuck Rifco.


Don't invest in a business that is active in a limited region or in a company that hasn't had at least 5 years of profitability. That way, you'll see that the Venture isn't a very safe place investment.


My prediction: Dark forebodings for AutoCanada. If people in Alberta have problems paying their loans, they'll surely won't buy a new car.

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!

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.