New Flyer Industries Inc. (NFI.TO)

A bus maker in Winnipeg. Tariffs likely hit this stock with increased input costs. From valuation, it is still attractive. He would like it to form a base before he looks at it. The other concern is whether the economy will continue to grow over the next year or two.

Their end markets aren't growing that quickly. They've made some acqusitions (buses and coaches) and are driven by cities ordering new buses. They're positioned in the U.S., so NAFTA's signing may have lifted an overhang. Valuation is okay, but not great. Nothing to compel her to own it.

A very frustrating stock. One of the names that should have benefited from the NAFTA agreement. A company that is growing. They are doing all the right things. They will build like 11,000 buses in the next couple of years. Great balance sheet. Trading at 13 times earnings. They are certainly not selling and if you are not on it, might be a good time to pick it away.

They have some facilities in the U.S., so he's not sure if NAFTA impacted them. TheIR shares have gotten too pricey, peaking at 23x PE. He prefers other spaces like auto parts.

This company seems to be the whipping boy for NAFTA. They have US plants unlike their competitors. This is an advantage for them. They have gotten great awards. She likes the Management. She is just not adding to it. She would wait. Too much volatility.

They dominate the luxury coach market with contracts in most major North American cities. He used to own them. Sold them because their ROE was in the high-teens, and wasn't good enough. It's not a bad company at all. A conservative growth play--there'll always be demand for buses.

He has been watching this bus manufacturer, hoping their EPS would climb back to $3. There is a good order backlog, but he is not sure if it is rising faster than their ability to produce. They have been doing building outside of Canada and he likes the diversification into the US.

Their quarters are fine and they are announcing new contracts so why is it languishing? It is the trade talks, even though they have operations in the US. The underlying fundamentals in the industry remain strong. Sit and wait it out and get some resolution with NAFTA. If you are waiting to buy, wait until NAFTA is resolved.

They just got new contracts. Long term holding. A cash flow machine. They have modernized over the years. Decent yield. The tariff issue affects only 3 percent of the cost of manufacturing on their buses. The order backlog is very solid. Trading at 13-14 next year earnings. (Analysts’ price target is $65.57)

Gone sideways for past year. Great job growing their base, stock’s done incredibly well last few years. But if economy is slowing down, it’s not the part of the cycle where you’d want to buy.

The bus manufacturer just came out with earnings, which should add support at $47. He would expect to see a return to $60. Yield 3.0%. (Analysts’ price target is $65.75)

(A Top Pick May 03'17, Down 2%) It is off a couple of percent because their last quarter sales were off. They think it is a one off so he is looking for better results in August. They have done a great job of having a presence in the US.

Likes this, though he's sold a big chunk of his shares recently to take profits (his position was getting too large). Below $50 he'd look at this again. They're well-balanced between US and Canadian operations. Recent numbers look good
with growing orders, but it takes time between orders and delivery of buses--will those cities still close those deals.

Has been a huge winner in the last couple of years. It has become one of the only players through acquisitions. Some concerns over NAFTA is affecting the stock. They have the structure to adapt. It looks interesting now.

New Flyer has been caught up with some of the other reasonably-priced dividend-paying stocks that have been left behind as people chase growth stocks. This is a global phenomenon, and shows particularly in the US. This company scores in the top 20% on valuation and the top 20% on stability, has given a 22% return on equity and trades at 15x earnings. It offers a good yield (3%) and a low payout ratio. However, it did miss on earnings in the last quarter. They continue to have a backlog and so they have a growth profile ahead of them.