CRH Medical

Spotlight om CRH Medical (CRH-T)

CRH provides physicians with products for the treatment of gastrointestinal diseases primarily hemorrhoids. It produces a single use disposable application which is increasing in popularity amongst physicians looking for an efficient, low-cost applications to alleviate the discomfort of patients suffering from hemorrhoids.

An increasing number of people are experiencing rectal pains indicative of hemorrhoids as a result of unhealthy lifestyles,such as stress, eating habits and sedentary jobs. This increases the demands on an already overstretched heath care system. This product allows doctors to treat their patients quicker and more efficiently than standard suppository or surgical solutions. The market for this type of product is growing now and will probably continue to grow for years to come

The company’s financial numbers reflect the growing popularity of their product. Revenue has increased from 51 million dollars in 2011 to 46 million dolars in 2015. Net income has risen each year allowing the company to reinvest in more R&D as well as instituting a dividend last year. Thar dividend presently yields about 2% per annum and the company has indicated they hope to continue to increase the amount they pay out.

In conclusion CRH provides a  one step procedure that is both cost and time efficient that should provide good share price appreciation over the next few years.

May 2016 Stock Pick Savaria Corp.

My intent on this blog is to highlight stocks that we feel correspond to our goals at GCM Financial. This includes established growth patterns in revenue, profits, and stock performance.  There is no guarantee that stocks that fall into these categories will perform positively over periods of time, however chances are better that over the long haul these stocks will outperform their peers. This will not be an exhaustive list, just one to pique the interest of those readers who are looking for more material to gain insight into investment strategies.

Savaria Corporation (SIS.T) is a Canadian based company that designs, engineers and manufactures products for personal mobility. This fact makes Savaria an interesting story in the sense that we are part of an aging population. Stairs are an impediment to the elderly and Savaria designs and builds personal elevators that allow them to stay in their homes longer as well as having access to facilities difficult for them to reach. They also convert and adapt minivans for easy access for wheelchairs and scooters. With the baby boomer generation now entering their senior years the demand for such services can only increase. The boomers are entering this stage of their lives blessed with more wealth than previous generations and a strong desire to remain independent and viable as long as possible. Savaria offers products that offer them the possibility of continued independence for a price that many can afford.

Fundamentally Savaria rates extremely well.The following chart shows growth in all key areas, earnings, profit and assets. This company has achieved consistent growth and is well poised to continue that trend. We are very impressed as well with the growth in dividends per share which exceeds 30 per cent. A 2.3 per cent dividend yield has to be considered a major selling point with funding for the dividend firm. Their Debt to Capital ratio stands at 22.6%, a very positive feature. The Price/Earnings ratio stands at 24.3 which in our opinion is high but is warranted due to its consistent earnings growth, the forward P/E is estimated to be 21.7, slightly more tolerable.

Probably the best result Savaria has achieved is the stock price. From under two dollars three years ago it has risen to a high of seven dollars in April 2016. We feel this stock has legs and would expect it to continue to outperform the general market. We invite you to do your own due diligence before investing. Happy Returns.

Annual Financials Dec 31,2014
12 Months, C$
Dec 31,2013
12 Months, C$
Dec 31,2012
12 Months, C$
3Yr. Growth
Total Revenue ($000): 83,696 76,538 66,876 8.51
Earnings before Interest & Tax ($000): 9,542 7,958 2,977 38.03
Profit/Loss ($000): 6,391 5,299 1,578 47.26
Earnings per Share: 0.23 0.23 0.07 36.72
Total Assets ($000): 71,420 49,013 49,380 18.97
Dividends Per Share 0.24 0.14 0.09
Dividend Yield: 5.52 4.80 8.54
Return on Com. Equity: 22.55 26.86 8.02
Employees: 356 322 297

Is Donald Trump Good For America?

The thought of taking Donald Trump’s nomination for the Republican Party seriously was inconceivable just a couple of months ago. It has gone from impossible to possible to probable so quickly that my head is spinning. Clearly I missed something a couple of months ago and I am scrambling to to understand the reasons behind his seemingly meteoric rise. The disconcerting fact that I am discovering is that a lot of what he is saying is not only agreeable but music to my ears. His vocal denunciation of the Iraq war and its aftermath is welcome even if his initial opposition to the attack was somewhat tepid. His comments on the economic meltdown in 2008 places blame directly on Wall Street practices and denounces the minor changes made to the laws as inadequate to stop a round two. His ability to call a spade a spade is refreshing in a world of political correctness and appeals to those who are seeking change.

Even his apparent disregard for international treaties and laws seem to appeal to the masses.  I assume that many like myself simply do not take him seriously. To me it appears that everything he says is a negotiable item. Illegal, okay then, we will crank it back a little. These absurd statements simply stake out an opening position, one that puts Trump in a strong position. This of course only works if you can find someone to sit down at the table with, and that could prove difficult. One assumes that if by some chance Trump did find himself President he would be forced to tone down his belligerent attitudes and become more statesmanlike, but there is yet no evidence for thinking that.

The crushing characteristic of Donald Trump, the one that makes him unsuitable for the Presidency is the divisiveness he creates and stands for. The inevitability of clashes between supporters and detractors only grows as his grip on the nomination tightens. In this modern world with so many varied ideas and groups fervently advocating strict adherence to these ideologies, it becomes ever harder to find compromise. Donald Trumps take no prisoner type of leadership can only see these groups becoming even more radical inevitably tearing apart communities and making America a terrifying country to live in. I hope Hillary will be able to withstand his overly harsh attacks, win the election and begin the process of healing the wounds he has opened. The world can only watch and hope.