Riverside Investments

Minutes of the monthly meeting of Riverside Investments, held at The Terminal City Club, 837 West Hastings Street, on Wednesday, December 4, 2024.

Before the meeting was called to order, the amazing George Noble, Past Captain and Past President of PGGC, was congratulated for playing (walking) 9 holes earlier today on his 95th birthday! George continues to inspire!

After welcoming 14 members, President Tim Turyk expressed his appreciation to Ron Miller for arranging tonight’s meeting place, and thanked Brad Scharfe, Kelly Boechler and Dawson Campbell for chairing meetings when Tim was unavoidably absent. Tim then provided a thoughtful “year-end report” on our investments, including some interesting observations about how our portfolio might have looked if we had not traded so actively in 2024? (Tim’s analysis is summarized at the end of these Minutes).

Minutes of the November meeting were adopted as circulated.

Due to Treasurer Jack Hurst’s hospitalization, Ron Miller (Jack’s imminent successor) was unable to obtain particulars of our financial status, but members were given copies of the President’s summary of our present holdings.

Watchdog Reports (the one change from November is in bold):

Stock                                      Reporter            Recommendation            TP/SL

Blue Owl (200)                     George Noble           Hold                            30/19

Mullin Group (800)               Kelly Boechler          Hold                            18/12

Icahn (800)                            Jason Scharfe          Hold                            25/9.50

Unisync (12,500)                  Dawson Campbell   Hold                         3.50/1.00

Uranium Royalty (5000)      Ian Pitfield                 Hold                               7/2.00

Atkins Realis (200)               Chris McHardy          Hold                            70/42

Meta (40)                               Chris Wood               Hold                          700/500

Rubric (200)                          Russell Lusk             Hold                            80/35

The President announced the following “Executive Team” for 2025:

            President – Brad Scharfe

            Vice-President – Kelly Boechler

            Investment Committee Chair – Jason Scharfe

            Treasurer – Ron Miller

            Secretary – Ross Collver

            Past President – Tim Turyk

Our next meeting will be held on Wednesday, January 8/25 in Chuck We’s boardroom (31st floor Bentall Four). Members must supply Chuck with car license numbers to take advantage of “all-day” free parking at the Bentall Centre. Chuck will arrange for a catered meal, so he must know our numbers well in advance of the meeting day.

Three other issues were raised in discussions preceding the adjournment:

·      Appropriate recognition of Jack Hurst’s stalwart service to Riverside.

·      Ron Miller’s welcome re-election to the Point Grey Golf Club board.

·      The ever-increasing cost of joining Riverside Investments (a subject surely to be re-visited?).

After the President was thanked for his 2024 leadership, he in turn thanked those who contributed to the December meeting, Adjournment was at 8:35 p.m.

Ross Collver, Secretary

Tim’s musings

Wholly responsible for trading our stocks online for the past 3 years, Tim has continued to watch the performance of our formerly held stocks and, speculating outrageously, he undertook a very interesting evaluation of our 2024 portfolio performance – mentioning three “what if” scenarios.

First, if we had sold our current holdings at the end of November, out of 29 sales in 2024, 13 would have been profitable and 16 would not, leaving us with about a 4% total increase for 2024 (while the TSX and S&P were up 18% and 27%). But if we had kept the stocks sold since January 1 and valued them as of November 30, our portfolio would have been up 23% (19 winners and 10 losers).

Next, if we had sold all our 2024 stocks at the highest price they reached after purchase, our portfolio would have been up 37%.

Finally, considering stop loss results (11 sales were thus triggered), if we still owned those stocks, we would be up over our original purchase price on 9 stocks (an average of 48%) and down on 2 stocks (an average of 10%).

So, what has Tim concluded from this exercise?

First, in using stop losses, allow room, and maybe not have a blanket policy?

Second, there’s nothing wrong with the way Riverside chooses stocks, and members using the information gleaned from meetings may have done quite well in their own portfolios?

Riverside Investments

Minutes of the monthly meeting of Riverside Investments, held at the Arbutus Club, 2001 Nanton Avenue, Vancouver, B.C., on Thursday, November 7, 2024

After welcoming 12 members, Vice President Brad Scharfe called on Chuck We for opening remarks.

As the Executive Vice President of “Pacific Northwest/Canada” operations of Hudson Pacific Properties Inc. (real estate investment trust) Chuck presented an excellent electronic (slide) review of the transformation of Vancouver’s iconic Bentall Centre, its five office towers, its shops and its surrounds – all owned and operated by Hudson Pacific (and possibly a location for our January meeting?).

Minutes of the October meeting were adopted as circulated.

In the absence of Treasurer Jack Hurst his written report (circulated in advance) referred to the following:

·      We lost Rob Wells and Don Simmons but welcomed Gautam Lohia.

·      We acquired NexTera Energy and Unisync.

·      InPlay Oil and NexTera were down; but B2Gold, Atkinsrealis and Uranium were all up.

·      NexTera was sold yesterday (via stop loss) but that was tempered by a weakened Canadian dollar.

·      Meta is up and Uranium Royalty is “soaring.”

Jack’s report was accepted (with our best wishes to him for improved health).

Dinner wine (non-Unsworth) was generously provided by Tim Turyk.

Watchdog Reports (changes in bold):

Stock                                      Reporter            Recommendation            TP/SL

Unisync                                  Dawson Campbell   Hold                         3.50/1

Uranium Royalty (5000)      Mel Rowles               Hold                               7/3

In Play Oil (6000)                 Ron Miller                  Sell

Meta (40)                               Chris Wood               Hold                          700/500

B2Gold (3000)                      Chris McCarthy        Hold                            6/3

Nick Scharfe reviewed Mullen Group Ltd (TSX: MTL), Alberta-based logistics company providing “truckload” warehousing and distribution services to energy, mining, forestry, and construction industries. Acquisitions (77 since 1993) have been its main growth strategy. Describing it as “a nuts-and-bolts stock” (paying monthly dividends) Nick recommended purchase of 800 shares ($15.72 CAD) and setting the TP/SL at $18/12 (duly resolved).

Brad Scharfe reviewed Rubrik Inc. (NYSE: RBRK), Palo Alto-based data management and data security company. As more organizations prioritize data security and recovery solutions, Rubrik will benefit from increased IT spending. Impressive revenue growth prompts analysts to rate it a “strong buy,” and Brad recommended purchase of 200 shares ($44.10 US) and setting TP/SL at $60/35

(duly resolved).

Brad also reviewed Icahn Enterprises L.P. (NASDAQ: IEP), Florida-based “master limited partnership” and conglomerate with investments in energy, automotive, food packaging, metals, real estate and home fashion. Describing it as “a compelling, BUT RISKIER buy opportunity due to its high dividend yield, strategic asset portfolio, and the reputation of its activist investor Carl Icahn,” Brad suggested that there is obvious potential in its diversified investments (especially energy) and its recent lower price. He recommended the purchase of 800 shares ($12.15 US) and setting the TP/SL at $25/9.50 (duly resolved).

Chris McHardy re-visited Blue Owl Capital Corp. (NYSE: OBDC) a stock he reviewed briefly at our October meeting. Blue Owl is a specialty finance and business development company providing direct lending to “middle-market” companies (its portfolio consists of secured loans). Chris recommended

purchase of 200 shares ($22.98 US) and setting TP/SL at $30/19 (duly resolved)

Upon Ron Miller’s recommendation, it was duly resolved that we sell In Play Oil.

The Vice President confirmed that our December meeting will be held at the Terminal City Club onWednesday, December 4, and that a week in advance of the meeting we must receive word from any member not intending to attend.

After the Vice President thanked Nick Scharfe and Chris McHardy for their stock reviews – and the absent Tim Turyk for being “wine host” – the meeting adjourned at 9 p.m.

Ross Collver

Secretary 

Minutes of the monthly meeting of Riverside Investments, held at Point Grey Golf Club, Vancouver, B.C., on Thursday, October 3, 2024

President Tim Turyk welcomed 15 members and, after thanking Brad Scharfe for chairing the September meeting, called on John Scott for “introductory remarks.”

Although John expressed appreciation to our Executive, he suggested that we are struggling and need to review our best practices – perhaps after we take a look at how other investment clubs are doing?

Minutes of the September meeting were adopted as circulated.

COVID-stricken Treasurer Jack Hurst was absent, but in his written report (circulated) he observed that our shrinking portfolio has left us “awash in cash” ($120,000), and although the month “as a whole” was positive (thanks to Meta and Uranium gains) we continue to lag far behind the indices to which we often compare ourselves. Jack’s report was accepted, with members expressing their best wishes for his and Elaine’s recovery. 

Dinner wine was generously provided by Nick Scharfe.

Watchdog Reports (changes in bold):

Stock                                      Reporter            Recommendation            TP/SL

Uranium Royalty (5000)      Mel Rowles               Hold                               7/2

In Play Oil (6000)                 Jason Scharfe          Hold                               ?/2

Meta (40)                               Chris Wood               Hold                          650/400

B2Gold (3000)                      Chris McCarthy        Hold                            6/3.73

Chris Wood reviewed NextEra Energy Inc. (NYSE: NEE), a Florida-based electric power and energy infrastructure company (operating through several subsidiaries) which owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets in the USA and Canada. Chris emphasized that “It’s dull and boring, but it makes money!” and recommended a purchase of 70 shares at market ($80 USD) setting the TP/SL at $97/74 (US). It was resolved that we purchase 100 shares.

Jason Scharfe reviewed Unisync Corp. (TSE: UNI), Mississauga-based parent company of Unisync Group Ltd. and Peerless Garments, self-proclaimed leaders in “premium uniform service programs” delivering “high-quality apparel solutions for corporate, public sector, and first responder clients.” Although Unisync has a history of strong returns, Jason emphasized that because it’s a take-over target, we should buy 12,500 shares (setting the TP/SL at 3.50/1.00) and hold it for at least 12 months. Jason’s motion to buy 12,500 shares was carried.

Chris McHardy reported briefly on Blue Owl Capital Corp. (NYSE: OBDC), a specialty finance and business development company providing direct lending to U.S. “middle-market” companies (its portfolio consists of secured loans) Chris will report further about the stock at the November meeting.

Speaking of the November 7th meeting (to be held at the Arbutus Club), the President confirmed that the designated stock reviewers are Dan Aspinall, Nick Scharfe, and Brad Scharfe,

The President also confirmed that the December meeting will be at the Terminal City Club on Wednesday, December 4.

Finally, the President announced Gautam Lohia’s nomination to membership and, following members’ approval, confirmed that Gautam’s name will be added to the membership roster upon payment of his entry contribution.

After the President thanked stock reviewers Chris Wood and Jason Scharfe, and wine host Nick Scharfe, the meeting adjourned at 9 p.m.

Minutes of the monthly meeting of Riverside Investments, held at Point Grey Golf Club, Vancouver, B.C., on Thursday, September 5, 2024.

At 6:30 p.m., after welcoming 20 members, Vice-President Brad Scharfe introduced guests Gautam Lohiaand Arv Sooch (prospective new members whose backgrounds are summarized at the end of these minutes).

After introductory remarks from both the Vice-President and from the Chair of the Investment Committee, Minutes of the August 1/24 meeting were adopted as circulated.

From a combination of Treasurer Jack Hurst’s written report (circulated in advance) and his “less than enthusiastic” (his term) meeting comments, the following observations can be gleaned:

·      While TSX and S&P indices are up 11.38% and 18.52%, to date, Riverside Investments somehow managed to lose .78%.

·      Individual member’s loss of $300 for the month probably constitutes some kind of (unenviable) record.

·      The stop loss “dump” of AbCellera Biologics, just two weeks after its purchase, makes one wonder about our quality of research.

·      After discussions about Fission’s potential at successive meetings, Jack carped that we “have managed to ride this stock down to a point where it is now priced below our cost,” prompting the following:

We have a holding in Fission

Making money for us is its mission

So we decided to hold it

When we should have sold it

And now we are feeling contrition.

Notwithstanding the above “doggerel,” Jack’s report was accepted.

Dinner wine was generously provided by Don Simmons.

Watchdog Reports (only change in bold):

Stock                                      Reporter            Recommendation            TP/SL

Capital Power (200)             Bob Wells                  Sell                             42/Trail-15%

Atkins Realis (200)               Al Fowlis                    Hold                            70/42

CVS Health (200)                 Michael McBride      Sell                             80/51

Fission Uran. (20,000)        Dan Aspinall              Sell                              8(TP)

InPlay Oil (6000)                  Ron Miller                 Hold                        3.50/1.80

Meta (40)                               Steve Caldwell          Hold                         600/400

B2Gold (3000)                      Chris McCarthy        Hold                           6/3

During the Watchdog Reports it was duly resolved that we sell Capital Power, CVS Health, and Fission Uranium.

Charlie O’Sullivan reviewed Uranium Royalty Corporation (TSE: URC) a Vancouver based “pure play” uranium royalty company focused on gaining exposure to uranium prices by making strategic investments in uranium interests, including royalties, streams, debt and equity investments in uranium companies, as well as through holdings of physical uranium. Charlie recommended purchase of 10,000 shares (at $2.60; setting the TP/SL at 6.75/2. Although a motion to that effect was defeated, it was then duly resolved that we purchase 5,000 shares.

Returning to the stock that he reviewed at our August meeting, Chris McHardy again recommended consideration of Kanzhun Limited (Nasdaq: BZ), a Beijing based human resources company providing online recruitment services through its highly interactive mobile app, “BOSS Zhipin.” However, strong objections were voiced about venturing into Chinese markets, and two motions to purchase the stock were defeated.

The Vice President confirmed that our October dinner meeting will be the last to be held at Point Grey until kitchen renovations are completed (end of February). Location/dining options will be discussed at our October meeting.

The Vice President also announced that stock reviewers at our October meeting will be Dan Aspinall, Chris Wood, and Jason Scharfe.

The Vice President suggested implementing a schedule requiring every member to periodically find and introduce guest speakers (a prospect obviously requiring further discussion)?

Finally, after appreciation was expressed to watchdogs, stock reviewers, and particularly Don Simmons (for providing dinner wine) the meeting adjourned at 8:45 p.m.

Ross Collver,

Secretary

Gautam Lohia, Point Grey GC member, is CEO of Apply Digital, founded in 2016 “to solve complex problems with well-executed digital Solutions.”

Arv Sooch, Point Grey GC member (with degrees in pharmacy and dentistry), in 2023 co-founded Waterwheel Development, a real estate investment company.

Riverside Investments

Minutes of the monthly meeting of Riverside Investments, held at Point Grey Golf Club, Vancouver, B.C., on Thursday, August 1, 2024.

President Tim Turyk welcomed 18 members.

At the invitation of the President, Nick Scharfe provided opening remarks by projecting “Twelve Commandments for Seniors” on our screen as he listed an interesting series of scientific, medical, and technological changes that we are either experiencing or are soon to face.

Minutes of the July 3/24 meeting were adopted as circulated.

In his written report, Treasurer Jack Hurst described July as a “quiet” month, reflecting the fact that very little business was conducted following our annual golf tournament. Jack’s report was adopted as circulated.

Dinner wine was generously provided by Chris Wood.

Watchdog Reports:

Stock                                      Reporter            Recommendation            TP/SL

Synopsis (10)                       Joe Ross                   Hold                       $624/Trail-20%

Capital Power (200)             (No reporter)             Hold                            42/Trail-15%

CI Financial (700)                Ian Pitfield                 Sell                             20/7.80

CVS Health (200)                 Michael McBride      Hold                            80/51

Fission Uran. (30,000)        Dan Aspinall              Hold                             8 TP

InPlay Oil (6000)                  (No reporter)             Hold                        3.50/2

Meta (20)                               Steve Caldwell          Hold                         600/400

B2Gold (3000)                      Chris McCarthy        Hold                           6/3

George Noble reviewed Atkins Realis Group Inc. (formerly SNC-Lavalin) (TSE: ATRL). Montreal based, and with 37,000 employees, it is the largest engineering company in Canada. With offices in 50 countries, and operating in more than 160 countries, it is involved in the design and construction of hydro dams, mining operations, bridges, hospitals, and nuclear power stations. Increases in both   revenue and share value in the past year prompted George’s recommendation to purchase 200 shares ($55.53), setting the TP/SL at $70/42. A motion to that effect was carried.

Joe Ross reviewed AbCellera Biologics Inc. (Nasdaq: ABCL), a Vancouver biotechnology company developing next generation therapeutic antibodies through a combination of technologies – including proprietary Immunizations, microfluidics, high-throughput imaging, genomics, computation, and laboratory automation. Although early success was achieved through development of two antibodies to treat and prevent COVID-19 infections (eventually acquired by Eli-Lilly and authorized by the FDA) the stock has since been “beaten down,” even while the company has initiated 90 programs with downstream revenue potential. Joe recommended purchase of 2000 shares (currently trading at $2.92 US) and setting TP/SL at $12/2.50. A motion to that effect was carried.    

In a fascinating review, Chris McHardy recommended consideration of Kanzhun Limited (Nasdaq: BZ), a Beijing based human resources company providing online recruitment services through its highly interactive mobile app, “BOSS Zhipin.” By 2021 it boasted of 100 million users and more than 6 million

partnering companies and claimed that its approach goes further than the “traditional resume-centric and search-based models of its peers.” But his assessment of analysts’ recommendations was not in accord with what some members’ recent research revealed, so Chris requested more time to investigate the stock’s potential, and will report further at our September meeting.

The President discussed meeting location options for the months of November and December, when Point Grey’s kitchen will be closed for renovations. That issue will be re-visited at our September meeting.

The President thanked Nick Scharfe for his opening remarks, Chris Wood for supplying dinner wine, the Secretary and Treasurer for their contributions, and stock reviewers George Noble, Joe Ross, and Chris McHardy.

Adjournment was at 9:00 p.m.

Ross Collver,

Secretary 

Minutes of the monthly meeting (and annual golf tournament) of Riverside Investments, held at Point Grey Golf Club on Wednesday, July 3, 2024.

After welcoming 22 members, Past President Dawson Campbell (acting Chair) invited Jason Scharfe (golf event Chair) to provide opening remarks. Describing both a recent experience in west coast sailing and an upcoming voyage from San Francisco to Hawaii, Jason spoke movingly about the value of friendship and the importance of teamwork in facing such tough challenges.

Minutes of the June 5/24 meeting were adopted as circulated.

Referring to his written report, Treasurer Jack Hurst described June as an “active” month. And, citing the sales of IBM ($2,100 loss), Darling ($2,200 loss), and Dollarama ($6,300 gain) as well as strong showings by Meta and Fission, we now have substantial cash available to re-invest.

Golf results.

Jason Scharfe introduced Senior Associate Professional, Drew Scollon, who announced the following winners from today’s golf event:

·      Heaslip Trophy (low gross) – Jason Scharfe (74)

·      Charlie Russell Trophy (low net) – Al Fowlis (70*)

·      Past President Trophy – Don Simmons (75*)

·      Team Chariot – Chuck We, Bob Wells Russell Lusk & Drew Scollon

·      Closest to #2 pin – Bob Wells

·      Closest to #17 pin – Ron Miller

·      Longest drives: age 80+ George Noble; age 60-79 Steve Caldwell; under 60 Chuck We

·      Chipping (tie) – Dawson Campbell and George Noble

·      Putting – Mel Rowles

Watchdog Reports:

Stock                                      Reporter            Recommendation            TP/SL

Synopsis (10)                       Joe Ross                   Hold                       $624/Trail-20%

Capital Power (200)             Bob Wells                  Hold                            42/Trail-15%

CI Financial (700)                Ian Pitfield                 Hold                            20/7.80

CVS Health (200)                 Don Simmons           Hold                            80/51

Fission Uran. (30,000)        Chuck We                  Hold                             8/Trail-20%

Tourmaline (300)                 Mel Rowles               Hold                            68/Trail-10%

InPlay Oil (6000)                  Ron Miller                  Hold                        3.50/2

Meta (20)                               Chris Wood               Hold                         600/400

B2Gold (3000)                      Chris McCarthy        Hold                           6/3

After confirming that Al Fowlis, Charlie Russell trophy winner (who bettered his age at this year’s event), will chair the 2025 golf tournament, the Chair again thanked our Pro Shop staff and Jason Scharfe for their combined efforts.

Adjournment was at 8:30 p.m.

Ross Collver,

Secretary

Riverside Investments

Minutes of the monthly meeting of Riverside Investments, held at Point Grey Golf & Country Club on Wednesday, June 5, 2024.

President Tim Turyk welcomed 18 members and guest speakers, Aaron Dunn and Ryan Irvine of Keystone Financial.

Invited to present opening remarks, Brad Scharfe expressed “optimistic thoughts” – inspired by the astoundingly innovative accomplishments of Elon Musk, founder of SpaceX, Tesla and various other ventures.

Minutes of the May 2/24 meeting were adopted as circulated.

While referring to his written report, Treasurer Jack Hurst described our portfolio’s May performance as “satisfactory” (even though we did not matchexchange indices). There were unusually numerous transactions (including a profit from the sale of Disney) and, while half our portfolio fared well, Dollarama, Tourmaline, Fission, and Meta performed best. Jack’s report was accepted.

Watchdog Reports: (Dollarama, the only recommended change, in bold):

Stock​​​​Reporter​    Recommendation​​TP/SL

Synopsis (10)​​Joe Ross​​Hold​​       $624/Trail-20%

Capital Power (200)​​Bob Wells​​Hold​​​42/Trail-15%

CI Financial (700) ​​Dawson Campbell​Hold​​​20/7.80

IBM (60)​​​Michael McBride​Sell​​         290/Trail-20%

Fission Uran. (30,000)   ​Dan Aspinall​​Hold​​             8/Trail-20%

Dollarama (200)                 Brad Scharfe​​Hold​​         120/Trail-10%

Tourmaline (300)​​George Noble​Hold​​​68/Trail-10%

Darling Inc.​​​Nick Scharfe​​Hold​​​75/30

InPlay Oil (6000)​​Ron Miller​​Hold​​        3.50/2

Meta (20)​​​Chris Wood​​Hold​​         600/400

During the above reports it was resolved that we sell our shares in IBM.

The President called upon our guests, Aaron Dunn and Ryan Irvine, of Keystone Financial (Independent Equity Advisors). Since 1998 Keystone has provided research services to help investors build portfolios of 15 to 25 stocks.

Keystone is not involved in raising capital for public companies. Rather, it conducts weekly, and bi-weekly online Q&A sessions hosted by its research analysts, and claims “a track record of successfully uncovering undervalued small, micro, and mid-cap growth stocks with tremendous upside potential.” Success is based on the premise that dividend stocks consistently outperform their non-dividend counterparts by a large margin.

After providing examples of dividend stocks that have performed well, in the ensuing question period our guests emphasized the following: the risks anddisappointments of investing in commodities or in the energy sector; that US markets outperform the TSE through greater diversification; that technology continues to drive innovation; and that only Microsoft and Alphabet Inc. are recommended AI developers.

Bob Wells reviewed CVS Health Corp (NYSE: CVS), a leading health solution company. CVS has over 9,500 retail locations, almost 1,200 walk-in medical clinics and, while managing benefits for approximately 110 million plan members, is trying to “vertically integrate” the health care industry through its attempts to improve efficiency and increase its market share. For reasons Bob explained, CVS stock declined from $109 to $53 over the past couple of years ($61.95 USD today). However, while Rite Aid (its main competitor) recently filed for Chapter 11protection, CVS has continued to generate solid cash flow and has consistently paid a quarterly dividend. Bob believes that a recent $6 gain indicates that CVS has broken its downward trend, and recommended purchase of 200 shares, setting TP/SL at $80/51. That was duly resolved.

As gold prices continue to rise, Russell Lusk emphasized some of the accepted reasons for owning gold stocks, and then reviewed B2Gold Corp (TSE: BTO). This Vancouver-based company is described as a “low-cost international gold producer,” and was founded in 2007 by PGGC member Clive Johnson (still its CEO). Operating gold mines in Mali, Namibia, and the Philippines (and starting in 2025 at its “Goose Project” in Nunavut) B2Gold maintains impressive production numbers, steady cash flow, and low debt. Russell recommended purchase of 3000 shares ($3.72) and setting the TP/SL at $6/3 – which was duly resolved.

After thanking George Noble for providing dinner wine, the President reminded members of our golf tournament on Wednesday, July 3rd.

Adjournment was at 9:15 p.m.

Ross Collver,

Secretary