New Flyer Industries Inc. (NFI.TO)

Unclear how tariffs will affect them. Significant production in US. Doing well, has a good backlog. From technical standpoint, not sure it’s reached bottom. Hits new lows frequently. Would like to see it build a bit of a base, and if it does, probably safe to step in. Well run, prospects are excellent. Cautious until trade war dust settles.

He did own it for some time and sold it because there is indication that demand is waning. There are indications that luxury motor coaches are peaking in that sector also.

(A Top Pick March 14/17 Up 15%). Better known as New Flyer, the bus manufacturer. He has recently pulled back, which started with average bus sales falling 11% in the first quarter. He thinks the stock was due for a correction and still is buying it.

He doesn't know how trade tariffs will effect NFI. They probably produce proportinately more in Canada, so they may pay tariffs. They had a modest miss in Q1, but they still have a 3-year backlog in production. This is an opportunity.
NFI will be fine. They have U.S. contracts converting into Canadian dollars. Not expensive now at 15x earnings.

YTD down 12%. High valuation, though run very well. If this is a major holding, then be ready to sell it when this moves up a bit. This won't perform like it has in the past three years.

The volume is good, but its trend is poor, not a good combination. It'll likely fall to the mid-40s, then see what to do.

The bus manufacturer better known as New Flyer. The ROE is in the high-teens, good, but not on his radar. He thinks the stock could continue to rise and he will continue to watch.

Great Canadian success story, with lots of US contracts. Some near-term NAFTA risk, significant tariffs would be a vulnerability on their Canadian manufacturing facilities. More fully valued now.

It's really well-positioned. Cities are in a period they have money as well as demand for cleaner buses. They were smart to build a plant in Minnesota which could ride the Buy America vibe now. North America is shifting to more mass
transits and cleaner buses.

Is this a hold over next year or two? Well positioned in the bus manufacturing industry, but their after market business has been a bit soft. Longer term, the sector will do well. Demand will be decent for the next year or so. Valuation is too high right now. Would take a look around $50. (Analysts’ price target is $67.)

It is losing a lot of long term momentum. We have not taken out any big supports but the $48 2017 support is pretty critical. If it break these then you have to question it. It's okay right now and you could buy into a dip.

It's a winning story. It's on his watch list. Don't double down following the recent pullback--doubling down isn't he style of investing.

Build buses in Winnipeg and the US. He watches this company. The product seems to be reaching al the US. A growth situation. Good quality.

(A Top Pick Aug 2/18, Up 9%) It is a slow and steady company but he likes the valuation. They recently increased the dividend 15%. They are good at making small acquisitions. There is a lot of spending going on from government.

Previous to this week was known as New Flyer. They missed on their last earnings. It is a well-run company with a good backlog of orders. From a seasonal perspective, however, manufacturing is not in a peak season right now, so he thinks there is now a chance of consolidation. He would become a buyer on a move back above the 2018 high.