Wise is a financial service firm and platform that specializes in international money transfers and cross-border payments. Wise earns a fee on currency conversions, interest on balances, and card transactions. Wise is growing revenue 20% per annum with operational leverage and is valued at a modest earning yield. The market is presenting an opportunity to buy a rapidly growing, highly profitable, high quality company at a fair valuation.

Nexstar Media (NXST) is a network affiliate broadcaster that is trading at an attractive valuation of P/FCF of 5.3x or 19% FCF yield.  The management at NXST are excellent capital allocators, returning the majority of FCF to shareholders.  In the technological age of the internet, you might think that broadcast television is no longer relevant. And like the newspaper industry, you might think that revenues for broadcasters would be in the perpetual decline. Luckily, you are mistaken.

We have the opportunity to buy Cogeco Communications (TSX: CCA) through Cogeco Inc. (TSX: CGO), a well run broadband company at a very attractive valuation of EV/EBITDA of 3.9x and 5.9x EV/EBIT and 3.5x P/FCF (28.6% FCF yield). Broadband companies or internet service providers (ISPs) are great companies to own. The market has de-rated broadband assets over the last few years, providing a great opportunity.  We believe, in the long term Cogeco Inc. will provide investors with a superior investment return.

Casinos are great businesses that can generate high returns on capital (ROC) with high cash flows.  We have the opportunity to buy Boyd Gaming (BYD) a well run casino owner and operator at an attractive price of 7.5x P/FCF and 7.5x EV/EBIT.  Management are conservative operators and good capital allocators. We believe, in the long term Boyd will provide investors with a superior investment return.