Boralex Inc. (BLX.TO)

Sees it breaking out and the cash flow is so cheap on a valuation basis. Projects are kicking on well.

(A Top Pick May 16/13. Up 13.76%.) Well on track to double their EBITDA and double their power generation capacity. Phase 1 of the wind farm project in Québec is now operational. Have plenty of projects in the pipeline. Sees this going as high as $20 over the next few years. Expects they will start a dividend policy at some point because they have great cash flow and great growth potential. This is one you want to hold for the long run for the upside.

Example of a small cap he can own in a small fund. Expects them to pay a dividend in the next year. Multiple should expand due to dividend potential and growth profile.

Small independent power producer. Expecting to see significant upside. Operating profits are going from $100 million to $200 million by 2016 and a lot of that is funded so they won’t have to come to the market and issue equity. Thinks they will be able to initiate a dividend sometime by the end of next year, which will cause the stock to go higher and get re-rated. Looking for $12 in the next 12 months and then to go up to $13-$14.

(Top Pick May 16/13, Down 5.71%) Likes the space. One of the few in the space that is not paying a dividend. Trades at a big discount to its peers. One of the highest growth profiles in the sector. Doubling capacity in next 3 years. $15 in 12-18 months, then $20 within 5 years.

One of the fastest growing power producers. Likes because it's not paying a dividend, so can get in at much cheaper valuations then it's peer groups, and it's also the fastest growing. Will be doubling it's capactity in the next three years. At some point will be paying a dividend, probably in the next 12 to 24 months which will drive the stock higher. Sees it going to $20 to $25 range in a couple of years. Mostly in wind power in France, and thermal power in Canada. Have their biggest project, a wind farm in Quebec going on stream at the end of this year. This is the end of phase one which is the biggest phase, will be complete, which will probably give a dividend in the next 3 years.