MEILLEURES SUGGESTIONS DE LA SEMAINE

YANNICK PRINCE BIDOUNGA, PRESI DENT & CHI EF I NVESTMENT OFFI CER

Viacom (VIAB.O) Barry Schwartz, Chief Investment
Officer and Portfolio Manager, Baskin Financial Services
Viacom offers the cheapest media valuation among
its peers. With Fox courting Time Warner, we think
it is only a matter of time for Viacom to eat or be
eaten. The company is rewarding shareholders with a
smart capital allocation as it has reduced its shares
outstanding (grce aux rachats dactions) by almost
40 percent since 2006. Viacom offers a yield of 1.5
percent and has raised its dividend by 26 percent
since 2012.



Cineplex (CGX.TO) by Michael Decter, President,
LDIC inc.
Movie selection is most important (premium seating,
special screening, tuck-ins, concessions help, but
dont drive bottom line). 2015 and 2016 are shaping
up to be very strong box office years, and Cineplex
will benefit. Shares are about 12 percent below
December 2013 highs and makes sense given the
weaker 2014 movie selection. Q2 2014 box office
was down 6.6 percent in North America and the top
four were 20 percent below the comparable 2013
quarter sales. I think this sets up for easy COMP
quarters in 2015, particularly given the strong movie
slate and the market will start to price this into the
stock in the back half of this year.
Walt Disney (DIS.N) by Michael Decter, President, LDIC inc.
Reported strong Q3 earnings (profits nets) after the close (fermeture des marches boursiers) on August 5. As we
expected, Walt Disney demonstrated continued strong growth in Media, Studio, Parks/Resorts and Consumer
Product (toy) segments, but slightly softer Cable Network income. We think tailwinds remain from its very
successful Frozen franchise through domestic and international home entertainment sales, along with ongoing
consumer product revenues (and sequel by around 2016?). Marvel comics franchises, including Spiderman and
Captain America, and Star Wars in 2015 will drive even higher Studio earnings over the next several quarters.
Attraction park traffic momentum trends remain consistent. We expect ongoing share buy-backs and potential
dividend bump in the second half of the year to contribute to this strong earnings trend
COMPRISING BET NETWORKS, MTV
NETWORKS, AND PARAMOUNT
PICTURES, VIACOM OPERATES
APPROXIMATELY 170 NETWORKS
REACHING APPROXIMATELY 700
MILLION SUBSCRIBERS IN 160
COUNTRIES
Club dinvestissement responsable du
Qubec
12/08/2014 dition 1, volume 4

RECOMMANDATIONS DE LA SEMAINE

Easyhome (EH.TO) by Jerome Hass, Partner, Lightwater Partners
With a market cap of $300 million, easyhome is on the cusp of becoming an institutional stock (institutional =
gros fonds de pension, socit d'investissement, socit d'assurances, etc). That usually means it is on the radar
screens of smaller institutional managers, but not yet in their portfolios. (Les gestionnaires de fonds des grosses
firmes ne peuvent pas investir dans des titres dont la valeur totale des actions en terme de market cap ne dpasse
pas un certain niveau. En gnral, cette valeur minimale se situe aux alentours de 500 millions au Canada ou 1
milliard aux tats-Unis. Les actions qui finissent par franchir cette barrire sont videmment susceptibles
daugmenter assez drastiquement, puisquil deviennent soudainement accessibles toute une srie de nouveaux
investisseurs dont le pouvoir dachat est trs important..) Once that buying starts kicking in, it can have a
profound impact on a share price. It is one of the reasons why we find the mid-cap space attractive. The growth
driver of easyhome is its consumer financing business, easyFinancial. The company has spent the last five years
building up the top-line revenues of this division; 2014 will be the year when its easyFinancial business begins to
translate into material bottom line (profits nets) growth for the firm.
The company consistently reports strong quarters (trimestre financier) the recent Q2 being no exception.
Consumer lending was exceptionally strong while the leasing segment was slightly ahead of expectations. With EPS
growth rates over 20 percent over the next three years, the stock still only trades at 11.2 times 2015 profits and 8.1
times 2016 profits (P/E ratio). This is exceptional value!!! Jerome Haas continues to add to his EH position, most recently on
June 17 at $20.36
Currency Exchange International (CXI.TO) by Jerome Hass, Partner, Lightwater Partners
Currency Exchange International is a wholesale provider of cash foreign exchange to banks, credit unions, retail
stores. Its clients include some of the top six Canadian banks and large U.S. regional banks. We view the company
as the Davis & Henderson of foreign exchange. In the same way that Davis & Henderson carved out a niche in
Canadian banking by focusing on the very narrow niche of cheque printing, Currency Exchange International is
focused on foreign exchange. Banks can outsource it more cheaply and more profitably than they can do it
themselves. Currency Exchange International has a low-risk business model; it earns a margin on both buying and
selling currencies. The firms proprietary software helps it keep net currency exposures balanced. Currency
Exchange International trades at 10.0 times 2014 earnings with 20 percent profits growth. He continues to add to his
CXI position, most recently on June 4 at $12.79