Firstservice Corp (FSV.TO)

Mainly in property management. Likes that they're capital-light and low capex. Can generate enough cash flow to grow. Acquire a lot of smaller companies in their sector. 25x forward earnings so not cheap, but they execute well. Managers own 20% of shares. (0.7% dividend, Analysts' price target: $108.49)

One of the top capital allocators. Valuation is stretched. They continue to growth organically. Lots of recurring business. They dominate the apartments management side of things. He will hold to it. Strong company. It is a little sensitive to the economy, so you have to watch for that.

Great Canadian company. California Closets, College Pro Painters are some of their brands. They are also in the property management business. It is a very capital light business with no fixed assets. Generate very high free cash flows. Very good story in the US. The one thing to worry is their labor costs but hey execute extremely well. (Analysts’ price target is $109.26)

This is a company you do not have to worry about. They have done great acquisitions and management is excellent. You can continue to own it forever.

Two divisions in real estate: property magnament and brands like California Closets and Paul Davis. They manage condos, mostly in gated communities in the U.S. There's little capex, but a lot of free cash flow. They've done well with acquisitions and enjoyed earnings growth with good EBIT margins. (Analysts' price target: $95.22)

Great Canadian company. California Closets, College Pro Painters are some of their brands. They are also in the property management business. Stock trades at 28 times earnings but it is a very capital light business with no fixed assets. Generate very high free cash flows. Very good story in the US. (Analysts’ price target is $94.75)

He has a large holding in this. Operationally the company has done well, but the multiple is not cheap. He will continue to hold.

They run gated communities and apartment buildings in the U.S. Trades at 24x earnings, so expensive, but their growth justifies that. It's capital-lite (few expenditures) business which is good. They've been growing at double-digits, growing organically at 7%, making acqusitioning along the way to further add to earnings. They occupy only 20% of the market (as the largest player), so there's lots of room to expand. Strong earnings growth in past quarters. (Analysts’ target: $91.25)

Canadian company that is in the property management services business. Great growth capitalizing on concentration in the space. They own franchise business like California Closets. High multiple but growth justifies it. They are the largest player in the space but they are only 10% of the market. Exposure in the States as well. Very unique company in Canada. Great brand. (Analysts' price target is $ 86.73)

(A Top Pick July 7/16. Up 48%.) Had thought the stock was undervalued and was quickly growing. Although listed in Toronto, 90% of revenue comes from the US. They do everything from cutting grass to painting houses to providing security services, primarily for gated communities. There is a big runway for growth, because it is a very fragmented industry. Well-managed.

You are better off holding on to this stock. It is highly unlikely it will correct to its past lows. What they are doing is very smart and very interesting. They are adding a lot of value to their clients. They generate predictable and consistent cash flow.

(A Top Pick, May 5/16. Up 39%.) A great story and a great Canadian company. They maintain properties, gated communities and apartments. Also, owns College Pro Painters. He likes that they have a large US presence. When they sign contracts, it is for quite a long time. There is a lot of capacity to make acquisitions from mom and pop type businesses at a reasonable price.