Evertz Technologies Ltd. (ET.TO)

(A Top Pick January 8/18 - Down 12%.) Great Canadian story. Liquidity isn’t great as the owners own 60% of the stock. They reinvest huge amounts of their CF in R&D. Leaders in the industry. Huge opportunity.

He owns this in his dividend fund. It is a well run company. The market for TV studios is very limited. The company is profitable and every couple of years, they pay an extra dividend. He likes to buy it below $15 and either sell it in the $20 range or collect the large special dividend. It normally offers a 3.5% to 4% yield (current yield is 4.3%), but every 2-to-3 years, it pays an additional dollar, which works out to be an extra 5 to 10%.

(A Top Pick May 31/17 Up 2%) This company provides the infrastructure and technology for the broadcasting industry. They have a good backlog of orders and they continue to hold it. They have no debt on the balance sheet.

Well-run company that makes equipment for TV studios. It's maximized its market. Every other year they pay a huge extra dividend, like an extra dollar last year. It'll bounce between $17-20.

A Canadian tech company involved in broadcast equipment as well as software in cloud-based video-degined networking. They re-invest 10-20% of revenues into R&D to make sure they stay ahead of trends. The CEO/co-founder owns 65% of the stock. In Raptors games, the officials review plays on screens supplied by Evertz (Analysts' price target $19.25)

This is a cheap stock and he likes holding it. It is not a growing business, but they seem to win market share and the balance sheet looks good.

He has never owned this. This is a well-managed company, still mainly owned by its founders. It trades within a certain range. They make equipment for the broadcast industry. Sales move in cycles within the industry. It cranks out a lot of cash flow, has a generous dividend. He is unlikely to invest in it but has nothing bad to say about the company.

This stock is perpetually in the $16-$18 range, because the owners generally pay out earnings in the form of dividends. The yield is backed by a 76% payout ratio – a little high, but sustainable. Overall, a decent ROE and good cash flow, but he believes there are better opportunities in this dividend space. Yield 4.3%.

They have a solid balance sheet and are well managed. It is a lumpy business. The stock has been in a narrow band for years and years. The dividend is not at risk.

They have done an exceptional job, with the owners still being the largest shareholders. They are now doing Software Defined Networking. This is going to be a big year for them. They have a big backlog and are getting some bigger deals as part of this move to Software Defined Networking. (Analysts’ target: $20.00).

A specialist in video communications, particularly within Broadcaster. The stock has basically been in a pattern of roughly $16-$18 for the longest while. Part of the reason is that when they make decent money, they pay it out in the form of a special dividend. Insiders own about 40% of the stock. In their most recent quarter they reported, earnings were down 15% on relatively flat sales. They are free cash flow positive. There are good opportunities for them, but thinks there are better opportunities in some of the other tech stocks.

The stock has done really well. They continue to have a big backlog. Trading at a fairly high multiple, but considering their growth rate, it hasn’t been too bad. He has this on his radar screen.

Hardware for the broadcasting industry. A very good operation. There is no debt and they have a history of paying special distributions as well as raising the dividend. They have a yield of 3.5 to 4% and it is a very well managed company

Manufactures equipment for the broadcasting industry, both hardware and software, for control rooms. A great company in terms of its return on capital. It has no debt. It pays dividends and special dividends. Trading at 16X earnings. Dividend yield of 4.3%. (Analysts’ price target is $19.00.)

This designs, manufactures and markets video/audio infrastructure equipment for the entertainment industry. This stock is doing quite well, and it’s at a spot where if you didn’t sell it originally, you might get another shot. He would be very cautious if it got back up to the high $18 again. The volumes aren’t telling him anything, and the stock has bounced off its last selloff and is now bouncing back up again. We’ll probably get one more run at the $18 level, and he would think about exiting.