From the Desk Of Irwin Michael – April 29, 2016

Over the past two weeks we have seen several of our companies report their quarterly results in the midst of earnings season. Four ABC Funds’ holdings that have released their financials include:

Uni-Select, a leader in the distribution of automotive replacement and industrial paint products across North America, reported solid results on the back of its rebranding and acquisition strategies to grow its network. The company reported growing revenue, margins, and earnings per share. Additionally, the company announced a two-for-one stock split, increased its dividend and raised its guidance for the rest of the year.

Facebook, the world’s largest social network, which includes Instagram and WhatsApp, has once again reported terrific growth in revenue, earnings and active users. These results are driven by advertising spending as the company continues to add value by offering businesses a cost effective way to engage with new customers. Additionally, the company’s founder Mark Zuckerberg announced a new share structure via a “two non-voting common share dividend.” It is our view that the announced changes will enable the company to focus on its long-term vision and retain Mark Zuckerberg as its dynamic leader., the largest online discount goods store and cloud service provider continues to make great strides in the online business world. In its recent earnings release, the company reported a revenue increase of 28% driven by Amazon devices such as its tablet known as the Fire and its cloud service and storage business. Among its users, cloud services provides storage to General Electric, Instagram, Netflix and Spotify. Additionally, earnings came in at $1.07 a share which was surprisingly above the $0.58 a share most analysts expected. We see great potential for to continue its dominance in its respective industry.

Boston Scientific, a medical technology company specializing in innovative medical solutions reported better than expected results this quarter. Both revenue and earnings per share grew as the company’s market leading products remain in high demand. In fact, four out of seven of its core businesses demonstrated double digit sales growth enabling management to raise its sales and earnings guidance for full year 2016. Furthermore, the company has been focused on greater efficiency, which has proven beneficial as operating margins increased and can probably still improve. Most notably, Boston’s common stock reached a 10-year high as investors have become increasingly confident in its business model. We continue to like the sector but, more importantly, Boston’s position within the medical technology business.

Irwin A. Michael Signature

Irwin A. Michael, President
I.A. Michael Investment Counsel Ltd.

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