From the Desk of Irwin Michael – August 12, 2016 On August 11, Nvidia Corporation announced another strong quarter with its Q2 2016 results. The graphics-chip company reported sales of $1.43 billion and EPS of $0.40 versus analysts’ expectations of $1.35 billion and $0.37, respectively. This strong performance can be attributed to increasing demand for Nvidia’s new generation of graphics processors. More importantly, Nvidia guided considerably higher than analysts’ forward consensus largely due to greater growth expectations from its deep learning, automotive, and virtual reality segments. We originally purchased Nvidia for its free cash flow, dividend, and underappreciated growth opportunities. Given that the company is transitioning into a fast-growing technology play, Nvidia is now gaining greater investment recognition, which has just brought it to a new 12-month high. However, Nvidia is no longer significantly undervalued and while the company may offer further price appreciation, we will monitor the shares closely with regard to opportunistic trimming of our holdings. Irwin A. Michael, President I.A. Michael Investment Counsel Ltd.