MEILLEURES SUGGESTIONS DE LA SEMAINE

YANNICK PRINCE BIDOUNGA, PRESIDENT & CHIEF INVESTMENT OFFICER

ONEX (OCX.TO) by Jennifer Radman, Vice President & Senior Portfolio Manager, Caldwell Investment Management

www.onex.com/

Onex is a private equity firm. Strong markets have enabled the company to collect performance fees as it sells investments it made in the past. While this is good, the stock has sold off on concerns

over how the company will spend the money it has raised, as 50% of its balance sheet will be in cash. We see this as a buying opportunity as their history of making very good investments suggests they will be able to meet their goal of growing Net Asset Value (NAV) by 15 percent per year over year.

GuestLogix (GXI.TO) by Bruce Campbell, President & Portfolio Manager, StoneCastle Investment Management

http://www.guestlogix.com/

GuestLogix is the leading global provider of onboard payment solutions for airlines, railways and travel operators. They service 90 percent of North American airline passengers and 40 percent of global airline passenger traffic. GuestLogix just announced record Q2 2014 revenue. This is the sixth consecutive quarter of record revenue. In Q3 and Q4 they will have more of their airline deployments go live strengthening their EBITDA margins. The street has started to grow impatient just as GuestLogix is about to produce the breakout quarter in EBITDA and EPS. They could earn $0.11 per share in 2015 growing at 35 percent annually. Last purchase made by Campbell was at $1.20

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‘ONEX CORPORATION IS A PRIVATE EQUITY FIRM SPECIALIZING IN ACQUISITIONS AND PLATFORM

ACQUISITIONS. THE FIRM MAKES INVESTMENTS IN BUYOUTS, LARGE- MIDDLE MARKET, LARGE-CAP, MID-CAP, AND SMALL-CAP MARKET AND DISTRESSED COMPANIES. IT TENDS

TO SELL COMPANIES THEY HAVE MANAGED TO SUCCESSFULLY

Club d’investissement responsable du Québec

05/09/2014 Édition 1, volume 7RecomMANDATIONS DE LA SEMAINE

Walgreen (WAG.N) by Don Lato, President, Padlock Investment Management

www.walgreens.com/

Walgreen sold off dramatically following the news that it would not use a “tax inversion” for its purchase of Boots Alliance. Although guidance was lowered, the stock price decline allows for an attractive entry point for this global pharmacy giant. Currently priced at 16.5 times August 2015 earnings which is less than the market multiple with superior growth prospects. Latest purchase in early August at $60.20.

Tesla (TSLA.N) by James Albertine, Car Industry Analyst, Stifel Nicolaus

www.teslamotors.com

Stifel Nicolaus put a new BUY rating on the stock (from a the previous HOLD rating.), with a $400 price target.

That is nearly 50% higher than its pre-Labor day weekend price of $269.70.

If you accept the company as a "slightly bigger than niche" global luxury auto manufacturer, you realize it has practically no rivals when it comes to electric vehicles.

It appears TSLA's primary competition remains reluctant to fully dedicate the resources necessary for developing a suitable Model S/X competitor with 200-300 miles of EV range (Electric Vehicle Range = How far you go with a full battery)

There are about 14 million high-net-worth individuals around the world with $1 million or more of investable wealth. If any of them are in the market and want to invest in electric vehicle, Tesla is likely to be the first company they turn to, thanks to what is a clear brand message, differentiated curb appeal, and overseas growth rate.

As it seems even the luxury competitors struggle to compete on a pure-EV basis with TSLA, it seems conceivable TSLA can continue to ramp production/deliveries globally at well north of a 100k units per year rate, excluding Gigafactory (Tesla's new battery factory) output and Model III introduction.

I recently visited the Tesla Fremont Factory. The rate of change vs. our last tour (May 2013) was staggering.

I am impressed with the amount of insourcing Tesla has achieved. There are now 120 robots putting together Model S vehicles on a repurposed ground conveyor system from a Toyota Tacoma production line. In-house production helps improve the yield and quality of the factory's output. I now predict the company can achieve a 1,000 units-per-week production rate by the end of the year, and remains on track to achieving its 2,000 units-per-week target by 2015. They're currently at about 800 units a week, he says. Tesla plans to add a second body assembly line in Spring 2015 to help pump out Model X SUVs and the firm has promised the same kind of vertical integration for its lithium ion battery "Gigafactory."

The ultimate driver of share price at this point is momentum. Tesla sentiment is like a freight train, in our view, benefiting from a well-manicured growth story that has caught the eye of a much broader investor base relative to most auto stocks.

Disclosures: This newsletter is for information purposes only and is not tailored to the needs of any particular individual or company, is not an endorsement, recommendation, or sponsorship of any entity or security, and does not contain investment advice.The responsible investment club of Quebec strongly recommends that you seek advice from a qualified investment advisor before making any investment decision. One or more affiliates or member of the responsible investment club of Quebec may invest or otherwise hold interests in entities which may be referenced in this newsletter. This newsletter is not intended to describe securities bought, sold, or held on behalf of any affiliate of responsible investment club of Quebec , and is not an indication of any intention to buy, sell, or hold any security.Sources for this letter include; Business insider and BNN's Market Call Top Picks segment.