SYLOGIST LTD (SYZ.V)

SYZ.V continues to fall and is currently trading at $1.45 level and is closing to its 52-week low. I am concerned a bit about the coming quarter. However, even assume it does not make any money in Q4/06, it will still make 0.14 for FY06. At currently level, it is still cheap. Downside risk remains low. This is a part of microcap stocks that you have to take. Having said that, I did trim a bit at a higher price today (1.70), just to reduce my exposure.

Heska Corp. (HSKA)

I was disappointed with the quarterly results of HSKA, and I exited early in the mornings. My concern is the very weak top-line growth, despite the seasonal factors. This remains a very speculative stock and if it could not maintain higher level of growth rate (at least double digits), I do not feel comfortable to hold it anymore.

With the proceeds, I added some CSCO and PAYX. I did not add CSCO before the earnings, because I did not want to take on the earning risk. While I missed a buck and half, I felt more comfortable to hold it here. My target for CSCO is $30 for the next 12 months, a very modest target.

PAYX delivered a strong quarter, increased its dividends, and re-affirmed its guidance, but the stock did not move at all. Part of it is its relatively high multiples (25X of FY07 EPS). However, I believe it is more appropriate to valuate PAYX with its FY08 EPS, which I believe will bring down its multiple to 20X level, a reasonable level for an extremely consistently performer, with about 15X EPS growth, not to mention about 2% of dividend yield.

Position: HSKA: none; Long CSCO, PAYX

PACIFIC INSIGHT ELECTRONICS COR (PIH.TO)

PIH.TO announced its quarterly results this morning. While earnings and EPS numbers are impressive, sales growth is rather slow. This confirms my early concerns of current status of the automobile industry.










Position: None

URANIUM SPECULATION

I add a couple of speculative uranium names this morning. As usual, I should have done this a long ago, unfortunately, I procastinated, and procastinated. On the other hand, I felt more comfortable with my current portfolio and I believe this may not be a good time. All uranium names have run really fast lately and I might have bought high here.

Position: Long CXX.V, MGA.TO

SYLOGIST LTD (SYZ.V)

The price action of SYZ.V has been down lately, although with very little volume. I am a bit of concerned here. Could it be a bad quarter coming? I did sniff some past quarter results just to give my confidence a boost.
















Position: Long SVZ.V

HAMMOND POWER SOLUTIONS INC (HPS-A.TO)

I am putting HPS-A.TO on my watching list (market cap $58 million), mostly due to its very strong financial results in the last few quarters. The stock has run up quite a bit and I am a bit cautious here and looking for a better entry point. Other than financial, I am also concerned with its cyclicality nature of its business, and low liquidity. Having said that the company delivered a blowout quarter a few weeks ago. Revenues up 35.1%, EPS up by 100% (0.16 vs 0.08) and EBITDA up by 56% this quarter. YTD, revenues up by 33.2%, EPS up by 80.9% to 0.38. backlog increased by 31.7%. Valuation is also reasonable. I expect it to make 0.54-0.55 this year, which will result in a multiple less than 10X. Results for the past quarters are also very impressive.

Position: None

WebTech Wireless Inc. (TSX-V:WEW)

Trimming another quarter of WEW.V on this run-up (see early posts here). Other than a decent quarter, I have no clue what's going on. All I know that there's tremendous buying interests on this name. A part of my position has gone up more than 300% and majority of them are more than 90%, since mid October. I really don't care about what prompts this run-up. I am happy to ring the register and take more off the table.

Position: Long WEW.V

STELLA-JONES INC (SJ.TO)

Trimming a third of my position in SJ.TO here. I opened this position at the end of September (see the post here), and it has gone straight up, more than 31% in a month. I have to ring the register a bit, even though it had a blockbuster quarter (revenues up 58%, EPS 0.60, margin improved, and raised guidance). I now believe it will make $2.1-$2.2 for this year and at least $2.5 next year. I remain my price target of $35 in 12 months. The nature of this stock is such that I believe it will give you opportunity to get in at a lower price, as nobody is following up this little stock.

Position: Long SJ.TO

The End of Income Trust

The Canadian conservative government dropped a bomb last night (WHAT A TREAT!), essentially eliminating income trust as an asset class. I managed to overcome my panic and disposed all my trusts holdings this morning. With the exception of one, I managed to sell them at decent prices. While I am taking a hit, I have managed not to lose my capitals, however, most of my gains from trusts disappeared. Frustrated, you bet. But what done is done, it's time to move on.

Trimmed a quarter of my position of WEW.V here on this ramp up.