Investing In A New Franchise / Concept

My client owns a successful restaurant . He does not have the funds to develop a franchise system so I proposed I would invest my fees in return for a one-third equity in the franchise system ( not including any ownership in his restaurant ). He agreed and I began my work.
Within two weeks of our first meeting he withdrew from our agreement. He insists on keeping 100 % of the equity . The result is he has 100 % of what I call ” The Big Shinny idea” – but nothing more of what could have been be a franchise / chain of successful businesses.

I believe that the reason small business remains small is that type of small thinking. What do you think?

NOTICE : Move Funds Now – India Cracks Down On ” Black Money ” / Tax Havens

NOTICE : Move Funds Now – India Cracks Down On ” Black Money ” / don’t wait for things to improve – act now 1Tax Havens.

 

 

Q: Secret Bank Account Busted ? Where Do You Hide Money Now?

Q: Secret Bank Account Busted ? Where Do You Hide Money Now?.

Agrium Inc.

AGU : NYSE : US$90.05
AGU : TSX
BUY 
Target: US$104.00

COMPANY DESCRIPTION:
Agrium Inc. is a leading global producer and marketer of
agricultural nutrients, industrial products, specialty
fertilizers, and a major retail supplier of agricultural
products and services in North America, South America
and Australia.
All amounts in US$ unless otherwise noted

Agriculture — Fertilizer
Q2 BETTER THAN EXPECTED BUT UNEXPECTED POTASH COSTS ADD
TO SHAREHOLDER FRUSTRATION
Investment recommendation
Following a plant outage-plagued 2014 that significantly hurt EPS
potential in the current year, we feel the stability of Agrium’s base retail
segment and the growth in wholesale volumes and earnings bode well
for the company going forward. The strong EPS growth profile due to
substantial volume increases and an improvement in costs over the next
two years offers good value to shareholders. We estimate retail EBITDA
to improve by 9% in 2015, nitrogen wholesale to realize a 750kt (21%)
sales volume improvement (and lower opex costs), and a 900kt (76%)
improvement in potash sales volumes in 2015 as their expansion enters
service, which allows for a normalization of the original tonnage and
additional sales via the retail business for the expanded tonnage. All of
the various plant outages in 2014 created a trough earnings situation
that should materially correct itself in 2015. We then expect to see
further growth into 2016 via the Borger nitrogen expansion, the
continued ramp up of the Vanscoy potash expansion and via retail sales
improvements.
Investment highlights

 Agrium reported adjusted Q2/14 EPS of US$4.31 versus our
estimate of US$4.15, consensus of US$4.11 and guidance of
US$3.85-4.35. Total gross margin was slightly above expectations at
US$1.60 billion versus our of US$1.56 billion estimate. Notably,
Retail gross profit was US$1.35 billion versus our US$1.31 billion
and Other gross profit was US$23 million versus our estimate of nil.
However, Nitrogen gross profit was weaker than expected at
US$137 million, versus our estimate of US$166 million, due in part
to lower volumes resulting from previously disclosed plant outages.
Valuation
We continue to rate the shares of Agrium a BUY but have lowered our
target price to US$104 (from US$106 previously) based upon an 11.5x
multiple to our blended 2015E/2016E EPS.

Rubicon Technology

RBCN : NASDAQ : US$7.49
HOLD 
Target: $8.00

COMPANY DESCRIPTION:
Based outside of Chicago, IL, Rubicon Technology is a
materials company specializing in growing
monocrystalline sapphire products mainly for the LED
and RFIC markets. It supplies 2″, 3″, 4″ and 6″ sapphire
cores and wafers as well as sapphire optical products for
the aerospace and defense market.
All amounts in US$ unless otherwise noted.

Sustainability — Energy & Power Technologies
A FALLING SHARD OF SAPPHIRE?
DOWNGRADING TO HOLD ON ASSET 
VALUATION
Investment recommendation
We believe RBCN has lost share in the sapphire market and its
move to vertically integrate has caused greater than expected
costs and delays in adoption. Despite the negatives, the shares
are trading well below tangible book value and, as such, we are
downgrading to HOLD on the asset valuation.
Investment highlights
 We believe RBCN’s move to vertically integrate has materially
increased its cost structure and is taking longer than
expected to qualify new customers.
 We believe that RBCN’s decision to raise pricing in the
Second Cycle has impaired its relationships with LED
manufacturers and is taking a toll as it bypasses the polishing
houses with its polished and patterned products.
 Our estimates have been materially lowered yet we maintain
a HOLD rating on the company as the shares are trading well
below tangible book value with a solid balance sheet,
minimal cash burn, and NOLs above the share price.

Blackberry / MCAFEE Story

go to Bloomberg TV
or my Facebook page has the video :   Jack Bass – placed on Facebook today)

McAfee: Dump Your Smartphone to Protect Privacy: Video
Antivirus Pioneer John McAfee discusses his internet privacy concerns on “Bloomberg West.” (Source: Bloomberg TV)

Aug. 12 (Bloomberg) — Antivirus Pioneer John McAfee discusses his internet privacy concerns on “Bloomberg West.” (Source: Bloomberg)

 

 

John MCAFEE gives Blackberry A Big PR Push

http://www.rtphone-on-privacy-concerns-m_NBADwgTsWDLonopLMLfw.html

http://www.rtphone-on-privacy-concerns-m_NBADwgTsWDLonopLMLfw.html

Video on smartphone lack of security.

 

McAfee: Dump Your Smartphone to Protect Privacy: Video
Antivirus Pioneer John McAfee discusses his internet privacy concerns on “Bloomberg West.” (Source: Bloomberg TV

McAfee: Dump Your Smartphone to Protect Privacy

 

I will be on the radio this Thursday at 10:40 AM PDT

Readers, Clients and associates:
Just a quick email to let you know that I will be a guest on the “Exit Coach Radio Show” on Thursday at 10:40 AM.
I think you will find it very interesting. I would really appreciate if you would spread the word and let your friends know about the interview. You can listen live from your computer by going to http://www.ExitCoachRadio.com and click on “Listen to live show” link .
Best regards

from your computer by going to www.ExitCoachRadio.com and click on “Listen to live show” link .

See More

Our Expert Hosts interview top Advisors, Authors and Community Leaders for 1 min. tips & 20 min. discussions on a wide variety of topics….
EXITCOACH.PODBEAN.COM|BY PODBEAN DEVELOPMENT

 

Halogen Software Inc.

HGN : TSX : C$8.84 BUY 
Target: C$15.00
COMPANY DESCRIPTION:
Halogen Software is a provider of Software-as-a-Service
Human Resources and Talent Management tools for
small and medium sized companies. The company’s tools
simplify performance appraisal, recruitment,
compensation management, succession planning and
more. Halogen Software is headquartered in Ottawa
Canada with ~300 employees.
All amounts in C$ unless otherwise noted.

Technology — Enterprise Software — Software as a Service
DECENT QUARTER AND GUIDE
Investment recommendation
Halogen reported in-line Q2/14 revenue driven by strong international growth
and record recurring revenue, and provided a slightly soft Q3 outlook. Halogen
has revised its 2014 guidance down slightly, reflecting the removal of perpetual
license revenue from its forecast. Customer retention and dollar retention
remained at ~90% and 100%+, respectively, flat with the previous quarter. We
continue to believe Halogen is a leader in the mid-market with strong products,
experienced management and leading customer satisfaction, further reinforced
by the Halogen’s impressive repeat performance in the 2014 Gartner Magic
Quadrant for Talent Management. We reiterate our BUY rating but our target
goes to C$15.00 (from C$16.50) based on 4.0x (from 4.5x) NTM EV/Sales
reflecting lower trading multiples among peers.
Investment highlights
 In-line Q2 – Revenue was $13.6M (up 19% YoY), in line with our and
consensus estimates. Recurring revenue continued to outpace overall
revenue, growing 21% YoY to a record $12.3M. Adj. EPS was a loss of $0.12,
a penny below our and consensus estimates.
 Slightly soft Q3 outlook – For Q3/14, Halogen expects total revenue of $14.4-
14.6M, versus our estimate of $14.8M and consensus of $14.5M. Recurring
revenue guidance is $12.7-12.9M, compared with our forecast of $13.0M.
 2014 outlook revised – Given no perpetual license revenue expected for the
rest of 2014, Halogen tightened its 2014 revenue guidance to $56.5-56.9M
(from $56.8-57.8M, reflecting no perpetual license) with recurring revenue
of $50.5-50.9M (from $50.3-51.3M), versus our $51.2M estimate.
Valuation
Halogen’s current valuation of 1.8x C2015E EV/Sales lags larger HCM SaaS
vendors at 7.1x and small/mid cap SaaS vendors at 3.6x. Halogen software,
despite lowered retention at 90% churn, remains a high growth recurring
revenue business with a strong product for a large and untapped market with few
direct competitors

Pengrowth Energy Corporation

PGF : TSX : C$6.82
PGH : NYSE
BUY 
Target: C$8.75

COMPANY DESCRIPTION:
Pengrowth Energy Corporation is an intermediate, dividend paying
E&P focused in the Western Canadian Sedimentary Basin.
Pengrowth is listed on the TSX & NYSE under the symbols “PGF”
and “PGH” respectively.
All amounts in C$ unless otherwise noted

Energy — Oil and Gas, Exploration and Production
SECURING MARKET ACCESS
Investment recommendation
Pengrowth released second-quarter results which solidly beat on
production and matched cash flow expectations. Key highlights of its
release include 1) the announced transportation services agreement
with Husky Energy to gain market access for its Lindbergh bitumen
volumes, 2) it has spent/committed 90% of costs on Phase I, 3) it
remains on time/budget at Lindbergh and 2014 guidance was reiterated,
and 4) results from its Cardium program continue to improve. We
continue to recommend the stock for an attractive dividend yield, solid
pilot results at Lindbergh, and a meaningful CFPS growth profile. Our
BUY rating and C$8.75 target price remain unchanged based 0.9x NAV
and a 2015E EV/DACF multiple of 8.2 times.
Investment highlights
Q2 in line. Production of 73,823 boe/d solidly beat CG/consensus of
71,735/72,236 boe/d. CFPS of $0.23 generally met our estimate of
$0.23 and consensus of $0.24. Full year 2014 guidance was maintained
except for a slight uptick in G&A expenses.
Securing market access. It announced a transportation services
agreement with Husky Energy (HSE:TSX, BUY rated covered by Phil
Skolnick) which accesses its Alberta Gathering System and includes a 10
year take-or-pay provision (with option for future growth at Lindbergh).
Pengrowth will develop a 15 km pipeline (and meter station) in Q2/15 to
facilitate the tie-in, the cost of which was included in its original budget
for Phase I. This agreement allows PGF numerous market access
options at Hardisty including rail and connectivity to export its bitumen
(WCS type pricing) along several key export pipelines.

Valuation
Pengrowth currently trades at a 0.7x multiple to CNAV, 7.1x EV/DACF
multiple, and $75,100/BOEPD based on our 2015 estimates, versus peer
group averages of 0.8x CNAV, 6.2x EV/DACF, and $78,200/BOEPD.

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