Leon's Furniture (LNF.TO)

(A Top Pick October 30/12. 16.23%.) A great Canadian brand name. The purchase of Bricks will really benefit them in the long run. They own lots of property, so you are not paying a lot for the furniture business. Their property is worth at least $5 a share.

Was a glitch with respect to competition regarding Brick, which they acquired. A fine business.

Trades at a very low multiple. Its purchase of Brick was a good acquisition. This gives them a lot of synergies. Also, have about $5 a share in the properties they own. 3.2% dividend yield and they pay special dividends on occasion.

Thinks they have made a transition by acquiring the Brick. They are going to keep both names in place and he expects it will be great synergies coming out of the supply chain. Will have purchasing power. Most furniture companies trade at 15-17 times and this one is trading at only 10 times. Yield of 3.18%. Should be worth $17-$18 over the next year.

Competition Bureau’s concerns will weigh heavily on the stock for some time. Feels this is expensive relative to other plays. (See Top Picks.)

Big box Canadian furniture company. Recently acquired Brick which was a good acquisition. Nice dividend yield of 3.13%. Occasionally pays a special dividend. Own a lot of the properties that their stores are located on. Family owns a lot of the stock.

(Top Pick Apr 17/12, Up 11.28%) Tightly held and owns Brick now. It’s a cheap stock at these levels. Nice yield. They own a lot of the properties they sit on. They know how to run the furniture business.

Bought the over levered Brick that was in the penalty box. LNF had no debt. Earnings are going to increase. The big concern in the market is Canadian housing, but he thinks it is all about employment, which is increasing in Canada. He would not expect it to go down as much in a correction.

Just acquired Brick Furniture at the right time. It had no debt but has a little now. Not covered by the street very much but it continues to grow. Family owned and they are concerned about shareholder value. Own a lot of their properties that their businesses sit on. Calculated BV was $5-$8 and the stock is around $12, so you still have a very good opportunity for them to do very well over the next little while. Nice yield.

3.5% yield – they just bought The Brick. Own a lot of the properties under their stores. It is a great opportunity with The Brick purchase. It gives them a lot of assets in Western Canada.

Their acquisition of The Brick was great, as they bought their major competitor. Pristine balance sheet. The Brick will double earnings. Only covered by BMO.

Great company. Great brand-name in Canada. No debt and trades at about 15X earnings. 3.5% yield. Have $1 a share in cash. Own all the property that their stores are on and the value of it is about $5-$6 a share. Your basically getting the furniture business for free.