Michael Smedley is executive vice-president and chief investment officer, Morgan Meighen & Associates. His focus is Canadian equities.
Concordia Healthcare (CXR-TSX)
Concordia is held by me and the Smedley Special Opportunities Fund from about $15. Some stock was sold and bought again in the teens and sold at $30 and $50 levels as I got this one wrong all of the time as a long-term investor seeing the gains as excessive. I am now more relaxed, observant about analysts' targets at the $100 level and beyond as this biotech revenues acquirer continues to live the dream, pursuing Valeant to the moon and beyond. Both groups relate back to the Biovail creation and Concordia is getting into bigger acquisitions, starting with Covis. Its issued shares are still contained at about 30 million. Watch out for the next move.
Noront Resources (NOT-TSX-Venture)
Noront, held by me for a long time, is a relic of the old bull market in mining and might be the first penny stock recommended in this sector in modern times! Everyone should know the story since its deal announced on the Ring of Fire assets to be acquired from Cliff Resources. Take this seriously. l made good money on the other juniors that were taken out by Cliff many years ago and now it all falls to the last man standing. Nowhere else in the world is this available.
This is one of the most important lemon producers in the United States. It was started up by five families in California in 1893 and they are still shareholders today. There is a chance that any Edwards you meet anywhere in the world is a shareholder. There are about five hundred descendants in that clan. It is no coincident they started the business in the same year as the giant Sunkist. They went independent and Sunkist has grown today into a co-operative of about 6,000 farmers, mostly in oranges. Limoneira, out of the quiet, has the atmosphere of the Santa Anita racecourse company, owner of valuable property. Limoneira has its valuable real estate north of L.A., mainly in Ventura County, and is using rental and sales cash flows to fund bigger lemon production and agricultural expansion in upside down look alike country in Chile. It is also the largest grower of avocados in the U.S. where consumption is oddly minuscule compared with European consumption and, not so surprisingly, Chile. This is a small cap for lemon lovers.
Past Picks: March 31, 2014
Then: $61.50; Now: $31.91 -48.11%; Total return: -47.27%
Knight Therapeutics (GUD-TSX-Venture)
Then: $5.28; Now: $8.84 +67.42%; Total return: +67.42%
Aurora Spine (ASG-TSX-Venture)
Then: $4.59; Now: $1.35 -70.59%; Total return: -70.59%
Total return average: -16.81%
Nothing is changing right now: low rates, good companies, Canada underperforming the U.S. only where oil and gas are its special negative influences for now. Cheaper fuel and weaker Canadian dollars have their useful potentials for certain sectors, but the country cannot retool fast just for that reason and present levels of pricing are guaranteed by no one. International affairs are very disturbing but impacts on markets hopefully are unlikely.