Tecsys Inc (TCS.TO)

(Top Pick Mar 19/15, Down 23.18%) A hospital cart helps with automatic reordering as well as ensuring all consumables are billed to the patient.

Their key is supply chain management within the 4 walls of a hospital, giving them better efficiencies and inventory control. Have an extremely large recurring revenue business. Expected to have earnings growth of 62% this year, giving a PE multiple of 32X, which is not cheap, but earnings next year is expected to be just as brisk giving a PE multiple of 19X. He thinks there is opportunity to continue to win more hospitals. Good opportunity for a one-year investment.

It is not early days. The stock is fairly expensive, but he would look at it on a pullback. It is way ahead of itself right now.

Very illiquid stock. Don’t rush out with market orders. Keep orders under $10. 3.3% cash flow yield. 42% growth next year.