Madacy Entertainment Income Fund (MEG.UN.TO)

Competes in the budget CD and DVD business. Customers include Wal-Mart, Best Buy, mass merchants and specialty shops. One of their clients just filed for bankruptcy which represented about 5% of their total revenues. It is now pricing in most of the risk.

Nothing wrong with this company. Investors sell when there is any drop. AT the point where a good financial engineer could take it out. A lot of small caps like this are best bought through a fund so there is less security risks.

Just announced results and some people were disappointed because they got a very large contract but had to buy back the previous supplier which resulted in a $500,000 loss. It's still growing sales. Getting new contracts. Hurt on the short term, but the yield is 16%. Just bought more because it's way to cheap.

Basically discount DVD's and CD's manufacturing and sales. Current yield is 12.2% which he thinks is sustainable. Thinks they will increase distribution in the next 6 months. The multiple on the stock should expand by at least 10% to 20% in the next 6 months.

Packager and distributor of low priced CD's. They own content. You'll see them on the discount rack at stores. Just announced their result and where in line with expectations.