Daniel LloydExchange IncomeEIF.TOTOP PICKMar 14, 2017

Really well run, proven by its track record. He needs to get comfortable with the way the company does different deals in diversified businesses, leaving management teams in place. Underlying businesses are pretty solid. Sources pilots from First Nations communities. He doesn't yet fully understand the dynamics of northern aviation. Stock doesn't fall too often, and he's looking at it.

Still likes it. They guided for 2024, about 5% below analysts' estimates, due to changes in contracts in their medevac business coming on late. Doesn't bother him, though it effected shares. Likes their transparency and sees this as a buying opportunity. They just landed a contract with Air Canada in eastern Canada. RBC just added it to their conviction list.

An historic compounder that pays a good dividend. They buy businesses, invest in them and grow them organically. Done very well this way. But shares have sold off and haven't recovered as he expected. Maybe their deals with airlines are a factor. Fine managers over 20 years ago.

We can't make short term predictions with any degree of accuracy, but EIF rose 8% with the November rally (plus a 21c dividend). It also just raised its dividend 4.8%. Much of course will depend here, and it will follow the market, but it is not typically the type of stock that 'spikes' higher. We would be OK with a tax loss/rebuy strategy with AD.UN as a short term proxy. 
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EPS of $1.09 missed expectations of $1.19 and revenues of $687.67M beat estimates of $660.45M. Revenue increased by 17% and Adjusted EBITDA grew by 12%. Its free cash flow was a record $117M, but net earnings per share declined due to the bought deal capital raised in Q2. Its bought deal offering is aimed at financing future growth capital expenditures, and its acquisitions have so far been deemed to be accretive. EIF raised its dividend by $0.12 to a new level of $2.64 per share. Most metrics were quite strong, except when looking at a per share basis, which highlights its rising share count. Management provided guidance of Adjusted EBITDA between $600M and $635M in 2024, with further growth anticipated in 2025 as contracts mature. 

Overall, the company continues to grow its dividends, and while the earnings miss has not been well-received by investors, we think its business is heading in the right direction and it continues to make value-add acquisitions. We consider it buyable and continue to like the stock for higher-risk income and growth. 
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Leader in Canadian aerospace, interesting manufacturing. Aerospace is in niche markets, without much competition. Medivac, pilot schools, government contracts for maritime surveillance. Expects huge revenue and profit growth when contracts renew in 2025. Yield is 5.44%, dividend should grow.

Surprised that share price is lower. Very successful in recent company performance. Great company with great management team. Will continue to hold. 

Solid, double-digit EBITDA growth on latest results. Raising dividend soon, 47% payout ratio. Trades below its 5-year average. Raised guidance. Problems are that there are a lot of cheap stocks out there and its balance sheet. Trades at 11x earnings, with 16% EPS growth.

The chart is struggling to consolidate. You don't want to see it fall below the previous low (and currently) of $50. But if it breaks upwards, you buy it.

Diversified industrial company. 
Wellington-Altus a major shareholder.
Strong dividend payout with good share price performance. 
Concern: bought deals during high share price environments. 
Wait to buy when shares fall to $40 range. 

Doesn't own it because it lacks a clear strategy, though they buy profitable businesses well. Can they sustain that? Appears to, based on their track record. He prefers safer investments with strong assets. He continues to watch this, maybe buy on dips.

Likes CEO and management. Accretive acquisitions, to which it brings capital and expertise. Really consistent. Dividend has grown 5% annually for 19 years. Returned just south of 20% annually during that time. Repeatable business model. Recent $172M equity financing. Recent big contracts from BC government and AC. About $1B in liquidity to fund the next opportunity. Yield is 4.88%.

It invests in aviation and pays a good dividend of 4.8%. It is good to hold for the long term. You could buy above $56 since it should go much higher.

In another base. Nothing wrong with the chart. A good stock to hold and collect the dividend. Boring, safe-looking chart. He wants to own safer stuff like this right now.

Does not own shares.
Strong Canadian company within aerospace sector.
Share prices have been excellent over past 5 years.