Ag Growth International Inc (AFN.TO)

He's longed owned it and happy with it. They just closed a purchased and have grown a lot by acquisition over the years. Equity deal brought their stock down a bit, but their balance is much better, they have assimilated those purchases, and are in the position to do more. Nice dividend, but haven't raised it in a while, because they're spending their cash on purchases. Steady as she goes here. Growth will pick up in 2019.

Likes this name. A safe, growing business. Ag stocks have been underperforming in general. Always had a premium valuation. Trading at 13x cash flow. Seems rich. Not too worried about the trade issues. (Analysts’ price target is $71.14.)

A food infrastructure play. They produce augers and storage equipment. Their last quarter saw sales up 30%. They will be raising prices soon and should be able to protect their margin growth. Their backlog has grown and he thinks this confirms their growth opportunities. They are entering international markets, which could increase the likelihood of a take-over. Yield 4.2%. (Analysts’ price target is $67.38)

(Past Top Pick on January 26, 2018, Up 4%) They store and transport grain. Agriculture is a growing sector because of population growth and rising living standards in emerging markets. They aren't hurt by fluctating grain prices, but benefit from rising grain volume. There's a good runway for growth.

(Past Top Pick on Feb. 15, 2018, Up 3%) Still likes it, though it's been sideways. Had a nice pop today with good earnings. What's driving them is that globally farmers are under-invested in storage, so AFN can benefit in the next few years.

This company provides augers and storage facilities for the farming community. It will be interesting to see if tariffs into the US may hinder sales of grains there. He likes the quality of the recent acquisitions and thinks they have good earnings growth. He has wanted to buy it, but it has always seemed too expensive on the multiples.

This is one of his core positions. The company is well-managed, is expanding internationally, and is doing a great job of integrating acquisitions. He thinks the company is at a really good entry point ($52.87 today) and that they’re going to have a huge year.

(A Top Pick December 29/17 Up 4%). Agriculture is a growing segment due to changing demographics and growth in developing economies, he says. This company handles grain storage and are immune to fluctuations in grain prices as they are compensated by volume. He continues to like it.