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TSE:FTT

Finning Int (FTT.TO)

100.97
-0.37 (0.37%)
as of Jun 19, 2026, 8:00:01 pm Market Open.
144 watching
0
COMMENT
They had some recent improvements in equipment sales. They need a catalyst for people to be interested in this stock. Overall he thinks it is well run and they should do all right. They need the resource market to be doing well.
PAST TOP PICK
(A Top Pick Sep 28/18, Down 27%) Still likes it. They just beat their quarter by 29%. They can grow with their margins, improving by cost-cutting. Models 16% EPS growth at 12.2x earnings. Very cheap. A solid balance sheet. Will be good over the long term.
PAST TOP PICK
(A Top Pick Jul 26/18, Down 29%) Good stocks will move like this on sentiment. The macro's gotten worse. One-time headwinds. Levered to gold miners, and better days are ahead for gold. Really cheap. Being paid to wait. You still want to have it in your portfolio.
DON'T BUY
You are dependent on a lot of mining and infrastructure for oil and gas. He does not see any compelling reason to jump into it at these levels.
WEAK BUY
This is a difficult one because the numbers have not been great over the last couple of quarters. It's close to the bottom but not a table pounding buy. They had a problem with their ERP system.
WATCH
Lower lows, lower highs. Support at $22.50. What's concerning is the descending triangle pressuring the support below. Wouldn't look to play it yet. If it breaks, we'll see lower lows ahead. Just exited period of seasonal strength, and it couldn't produce gains, so that tells you something.
PAST TOP PICK

(A Top Pick May 16/18, Down 26%) Disappointing, because of overblown fears of a recession that he doesn't expect. This is very cyclical demand for Caterpillar equipment. They reported earnings today and they were in line with subdued expectations. Sales were better than expected and they have partially solved a distribution problem in South America.

TOP PICK
Also a past top pick today. Management has succeeded in shifting its revenue mix from 32% new product and service revenues to more than 50% today to reduce cyclicality. The stock has been a victim of overblown recession fears, and problems in their South American unit, though today they reported that as fixed. They boast 13% ROE and 6% dividend growth rate. (Analysts’ price target is $28.43)
DON'T BUY
A laggard. He bought it over the winter, pulled back, so he sold it. FTT is trying to find a floor. Compare this to peer, Toromont, which is like day and night. Toromont has broken to new highs.
BUY ON WEAKNESS
Hold it for two years? It's a deeply cyclical stock that hasn't been doing well. He wouldn't hold it for two years, but rather buy it now as a trading opportunity.
BUY
A cyclical name. Exposed to Western Canada. They reported today and it was sloppy in Latin America. Good backlog in Canada and great balance sheet. It trades at a reasonable multiple considering its growth rate. If we don't get Line 3 in Canada it wont be a great year for 2019. But he sees this as a when more than an if. Good long term holding
COMMENT
Exposed to western Canadian oil and South American copper. He's more optimistic about the oil sector than copper; he expects the oil price will recover. But getting Canadian oil into US markets will remain a long-term issue without an instant fix. FTT is good name to own with good managers. Don't see a lot of upside short-term though.
HOLD
The multiples are near 11 times earnings -- quite cheap. Management has gotten into good higher margin business in the energy space. On all metrics it looks very enticing. They had added to their position around $25.50. He met with management team recently and believes they will be able to continue to expand margins into the future.
WATCH
They have a Caterpillar franchise out west and are in Latin America. They have a facility where they remanufacture Caterpillar parts. If you think there are legs left in the mining cycle you could add to it.
TOP PICK

End markets are in early stages of recovery, robust backlog. Really nice growth. Really good balance sheet. ROC is 17% for 2019. Good Q2 performance. Pretty cheap. Tailwinds from the macro story and efficiency gains. Decent dividend. Bluer chip name. Will do well over the next 1-2 years. Yield is 2.5%. (Analysts’ price target is $39.17.)

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