Favorite websites to select an investment idea

Somebody recently wrote a comment saying: "I don't understand why an intelligent folk like you always uses the F word".

That guy has a point. I, for myself, don't know why I always use that word. I think it's probably because I'm francophone and using strong words make me feel part of the english community.

I can see why your cunt is full of shit because of my abusive use of the F word. So, for once, i'll make a big effort and I promise that not any line in this post will include this horrible word.

Today, I've decided to write about the websites that are the most useful for me. I generally get my investment ideas on those sites and I compare the recommandations with what is written on some other sites.


www.reuters.com

Best place to get easily the recent ROE, the ROE for the last 5 years, the EPS growth of your favorite company, the payout ratio and the predictions of the analysts following your titles.

www.stockchase.com

The best website to get a lot of information about what has been said about investment ideas in english canada. That's where you'll find almost all what Jason Donville has said about his top picks over the years. That's where you'll find some good other advices too but generally speaking, there's a lot of crappy analysts that don't deserve a lot of attention. But, that's where I've got the idea for Nobilis Health lately and it's not Jason Donville who suggested it as a top pick...

www.dataroma.com

Dataroma is a great website that details all the portfolio of the greatest investors in the world (mostly americans). Using that website, you'll can see what is the composition of the portfolio of Warren Buffet and many others. You'll also see all the latest insider transactions which could help you with the momentum around one of your titles. It helped me a few times (ans not so long ago with Valeant).

www.canadianinsider.com

A cheap equivalent to dataroma. Well, a very cheap equivalent because the website looks like it's 2002, But you'll find all the latest insiders transactions for canadian stocks which could help you with the momentum around one of your titles. It helped me a few times.

www.seekingalpha.com

Seekingalpha is a classic in the investment community. You'll mostly find analysis about american stocks there, and generally, large caps. But the community is very active and dynamic, so for each article about one of your favorite title, you'll see a lot of commentaries. Some of those are good and may guide you towards an investment decision. But a lot of dickheads write articles about stocks which they recently bought and try to pump their shares. Be cautious.

www.forum.entrepreneurboursier.com

Speaking about sand in the vagina, the guy behind this website may have a few grains of sand in his reproductive engine because of me but his website is, in my opinion, the best place in Quebec to share ideas with other investors. I've found some ideas there too. And some people using that site share the same philosophy as me.

www.valueline.com

I also use that website once in a while. Less and less since a couple of years however. I don't think they're so great at anticipating a stock performance. But their analysis are very concise and consistent. So, in only a page (which is full of details), you'll get a great analysis. You have to pay to use that site, but if you use it via banq.qc.ca (if you're a quebecer), you can use it for free. People from other provinces may have a similar provincial advantage but I haven't made any verification.

No F word in that post. I've done it!!

Portfolio review (april 13th 2015)

Things are going well so far in 2015 for the Penetrator Portfolio. I’ve had about a 20% yield since january 1st, which is excellent, following two very good years. 

At the time of this writing, I own 9 baggers in the portfolio. If you haven't read a classic book about investment yet, you have to know that a bagger is a stock that has doubled. A two bagger is a stock that has tripled and so the fuck it goes (don't know if it's a valid expression but I have the intention to use it later). 

I don't have any stock  in which I don't have faith. However, I think that Constellation Software is pretty expensive now and Couche-Tard isn't cheap too. But these are probably two of the best managed canadian companies, so quality has a price.

I look back about three years ago and things have been incredible for me at the investment level. My portfolio is up about 200% since fall of 2012. A lot is due to Jason Donville's advices, once again. But it's never enough. I still want more. I always want more. Because once you've reach the top of the stairs with a stock, you see that some stairs are there and go even higher. That's infinite. 

I'm now a starving capitalist, each day of my fucking life. 

 A few baggers still in portfolio :

Constellation Software : 5,5 bagger

Valeant : 1 bagger

Cipher Pharma : 1,5 bagger

CGI Group : almost 1 bagger

Alimentation Couche-Tard : 2,5 bagger

Concordia Healthcare : 1,3 bagger

Mallinkrodt : 2 bagger (almost) + 20% conversion $US

Dollar Tree : 1 bagger + 20% conversion $US

Ross Stores : 1 bagger + 20% conversion $US

Portfolio on april 13th 2015:

Title	Percentage of the portfolio
Valeant	11,6%
Cipher Pharma	9,6%
Constellation Software	9%
Home Capital Group	8,2%
CGI Group	7,8%
Alimentation Couche-Tard	6,2%
Concordia Healthcare	5,1%
Vecima Networks	3,5%
Nobilis Health	3,5%
Callidus Capital	2,7%
Mallinkrodt (US)	8,9%
Portfolio Recovery and associates (US)	7%
Dollar Tree (US)	4,3%
Gilead (US)	4,1%
Ross Stores (US)	3,7%
Dorman Products (US)	2,7%
CASH	2%

Freedom as soon as fucking possible

In the last few months, I've been thinking about selling a lot of my holdings for buying something like a grocery (Metro) or a kintergarden or something else that produces revenues in a stable way. I'm at a point where I want to feel free from work, or, at least, feel a little less obligated to work. In other words, I want a B plan.

Which leads me once again to the real reason why money is important for me: freedom. Freedom to retire as soon as possible and possibility to survive for a good period of time if a bad luck happens. I'm pretty sure I'll have some bad lucks in the future. Sorry to sound so depressed once again, but my ass is full of shit (if you can understand poetry).

I'm completely fucked up when I hear people saying that they're not ready for retirement. Come on, bunch of fuckers! How boring is your life to say such things?

I've been ready for retirement all of my life. I have enough hobbies and interests to get myself occupied. And well, let's admit that my interest for the stock market should occupy me too if I ever retire. It's gonna be my main occupation.

Having money helps me to sleep better (not to sleep well but to sleep with a little less anxiety) because I know that I could get through some bad luck. In fact, I see bad luck right ahead (or at least bad circumstances) and I'm exhausted about how life brings back bad luck each 3 or 4 years.

In fact, I'm pretty exhausted about being dependant about anything at all. Mainly to maintain a job. 

Some crazy fucker is short on Callidus Capital

Some crazy fucker in a hedge fund decided to short Callidus Capital. The news was in the media today, at the same time as the company reported results.

The results were very good. But the stock went down because of a not so solid decision to short the stocks (based on a dispute as we can hear).

Investors are lemmings. Warren Buffet said that years ago. So, on the news of a hedge fund going short, a lot of people decided to sell their stock, and a decrease of more than 10% happened in the price of the stock.

It reminded me of the american hedge fund that decided to short Home Capital Group one or two years ago. Well, this time, it's a company with a shorter track record than Home Capital, but it's nevertheless a good company with solid numbers. In my view, you should never short a company that makes profits and that is cheap. I've never been short but if I would, it would be about a stock that is going to bankrupt.

At less than 10 times future earnings, with a ROE of about 18, earning per share growth of 56% since the last quarter (!), Callidus Capital is a strong buy in my opinion.

... And, by the way, Novartis Health is up more than 30% since my last post. Their results were very good. A buy too for that one. 

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.