Element Fleet Management (EFN.TO)

Model price is $20.22. He sees this pulling back to around $15.17, certainly in this Canadian market selloff. He would be a buyer at $15.20. This is getting tougher and tougher because the balance sheet is getting so big compared to where the earnings are.

Financials as a sector are good cash generating businesses but you want to pick your spots. They are the North American leader in fleets. They just instituted their first dividend.

This is a way to have non-bank exposure in Canada and not have exposure to the housing market. Management has done an incredibly good job and have made 2 major acquisitions, including the GE fleet business. It’s very early days in terms of integration. Company is trading at around 10X forward earnings, which looks pretty cheap compared to the banks. It is growing faster than the banks. Expect the dividend will continue to grow. Dividend yield of 0.58%.

They are a leasing company. They purchased a lot of GE-T’s assets. 11 times earnings. There is some growth by acquisition opportunity also.

This company started growing and bought out some GE assets and some Trinity assets and then started to pay out their 1^st dividend. This is a fabulous sign of confidence from the Board of Directors and management. Business conditions are very good. A lot of people may be concerned about higher rates, but as long as interest rates don’t spike up and they are able to maintain that spread, it is not a big problem. A really, really good non-bank financial company.

(A Top Pick Nov 25/14. Up 18.56%.) This is going to grow largely through earnings, rather than multiple expansion. There is always the possibility for acquisitions. Has a fair exposure to the US. This is a company that is in the right place at the right time.

A leasing company, but the biggest part of their leasing is fleet leasing. Made a huge acquisition from GE (GE-T). They will be selling off some non-core assets in New Zealand, Australia and Mexico, and will be keeping their US and Canadian holdings. Feels there is some really strong potential over the next little while. There are hopes that this company will pay a dividend in 2016.

Recently made 2 acquisitions, and both are focuses on partially moving from Canada to the US. This is really a fleet management story with anything from aircraft to trucks to rail cars. They can outsource the leasing side of things, but it is also the incremental services from repairs or logistics, a tack-on fee, that they keep getting every single time. This has a more conservative balance sheet which he views as a positive.

A fleet leasing company. It is a good opportunity to buy here. He thinks they will be paying a dividend over the next 6 months to a year. There is a really great story here. He thinks you will see good growth.

He likes the stock from a technical point of view. If it bounced off $18 it could be a great chart. It needs to test the previous resistance level.

Has done extremely well over a number of years. The valuation is more attractive now than a couple of months ago. It consolidated. Be cautious of the name because some people made a lot of money and may take profits. You need the US economy to do well for them to do well. It is setting up for a nice entry point in perhaps a few months.

It offers very good growth but they are looking for ways to raise money in this market. People are taking money from it because they see everything is going down. There is nothing fundamentally wrong with it.

The reason you want to own this is a belief in Steve Hudson’s ability to grow the business significantly. He has definitely demonstrated a growth by acquisition story that is working. They are supposed to start a dividend in early 2016. He likes what their business is doing.

This is going to be based a lot on the economy overall. The chart is very positive as it had a positive break out from a long consolidation period. It has turned back down again. If it breaks down below its support line of around $15, that will be negative. Wait for a clear direction on the broad market.

The deal with General Electric (GE-N) just closed. Size matters in this business. From what she has seen, this company will continue to make acquisitions and will probably be one of the largest, if not the largest company in this space in North America. That means they will be more profitable and will be able to continue to grow. She really likes it. A great growth stock.