New Flyer Industries Inc. (NFI.TO)

(A Top Pick Feb 21/17. Up 7%.) He was taken out of the stock when there was a significant price decline.

(A Top Pick Feb 21/17. Up 29%.) The outlook is still pretty good. A lot of municipalities in the US are basically playing catch-up in building up their fleets.

Wonders at how much more good news there can be in this. They’ve benefited a lot from attrition in the industry. Also, have diversified more into service and parts, which has been very good for them. At current multiples, it is trading at close to 5X BV and 20X Forecast Earnings with a yield of 2.4%. Feels the weight has shifted more to the downside than to the upside.

There probably won’t be a better time to buy as it has been in a state of pause. You probably have a buying point for the long term. It is a good company and is very well run.

In a world where everything is expensive, you try to choose a name that is expensive, but gives you growth. This company continues to be positioned well. The stock has taken a bit of a pause, so he likes that as an entry point. They are doing a lot of things right. They are continuing to do acquisitions and grow. The key is the recent softness on the share price. A bonus is some of the tax reform which they will benefit from. Dividend yield of 2.5%. (Analysts’ price target is $62.)

This has a couple of problems. Its earnings forecasts have kind of levelled out, and FMV is about $47-$40 and the stock is at about $51. Also, there is quite strong technical resistance at about $53. He would give this a pass for now.

This has done extremely well. Just acquired ARBOC Specialty Vehicles out of the US, and expects it to be immediately accretive to earnings. Public transportation should, theoretically, be going under a resurgence. Dividend yield of 2.6%. Probably a good name to hold.

Not a particularly exciting industry. They did an acquisition in 2012 and it has been a transformational one. They made another today and the stock price reacted favorably. He thinks this announcement just solidifies his opinion of this being a great company. They have a nice dividend. (Analysts’ target: $62.00).

They have had a couple of disappointing quarters, where the growth has not been there in the aftermarket side. They delivered a lot of busses and they are simply a lot better than in the past and so the repairs are down. Still a great company with a huge 3 to 4 year backlog. They announced a record backlog recently. There is some disappointment that they are not ramping up production. He would definitely hold it. They are a cash generating machine. Until they come out with another acquisition they will spin out a lot of cash that will end up in shareholder’s pockets.

Doesn’t know the seasonality on this stock. Technically, the chart shows it has formed a classic double top pattern, and last week finally broke below the trading range, implying the trend has now changed from long-term Up to Down. Technically it is no longer an attractive stock.

They have done extremely well over the last few years. Their revenue is going to grow less than 4% each of this and next year. The valuation is getting rich. Customers are reducing inventory due to budget cuts.

Largest bus manufacturer in North America. PE ratio seems to be about 15X, which is low in today’s standards. Has a big backlog of orders and have opened service centres all over the place. Companies are changing from oil to gas and electric, which is what this company is producing.

This has good value and good momentum. Chart shows a very nice uptrend. Longer-term it looks pretty good.

Reduced his position significantly over the last while. A great business. They are dominant. Have grown through acquisition and organically. In the last quarter, their Book to Bill (number of new orders versus the ones they’ve built out and shipped) was 1.28X their billings, which was great. Sales are going really well, but their aftermarket business is doing less well. We are in a strong equity market and it has been a wonderful performer, but for the first time in a long time it is trading below the 150-day moving average, so technically it is less attractive. Made a lower high in November. If you are patient and are making a long-term investment, that’s fine, but he wants everything working today.

Canadian industrials still look pretty good. Chart shows a nice upward trend from 2015, followed by a sideways move this year. However, it has hung on to the lower end of the 2017 base. Unless it got below $46, you are probably not going to have too much problem with it.