New Flyer Industries Inc. (NFI.TO)

He is attracted to the overall business, which is a good one long-term. However, it is never going to be one of these sexy super high growth stories. Probably a little bit pricey here. Dividend yield of 4%.

Largest bus manufacturer in North America. They have 35% of the parts business, and 35% of busses run on natural gas. There was pent up demand when the economy started to pick up, but that is now used up so if you are a trader you take profits, or if you are a long term investor they are going to continue to do fairly well.

Pretty much the North American premier bus manufacturer. Have operations in both the US and Canada. They deal in parts and services as well as bus manufacturing. If you are looking at the health of the US economy today, which is quite strong, it is going to allow a lot of municipalities with higher tax revenues, to look at upgrading their bus fleets. This company will be a beneficiary of that. Yield of 4.45%.

This had a good run, but is now going sideways. There has been some good news on the company and they continue to make progress in signing new contracts. As a junior, this company could do quite well. Hold onto your position, but keep a very close eye on it. 4.7% dividend yield.

Well-positioned, and the management over the last few years has put much more of a focus on manufacturing and efficiencies, and over the coming years they will be beneficiaries as fleets are renewed in cities throughout North America. They participate in electric, hybrid and traditional bus lines. Not only are they one of the few North American manufacturers left, but also have a good parts aftermarket business that has been growing significantly. Yield of 4.49% which he feels is safe.

Good, solid, long-term hold. Sold off a little bit from the highs, but still yielding 4.5%. You should see little better numbers coming out next year. Recently increased their weekly production and are up to 51 units per week. Contracts keep rolling in. Building transit buses is a pretty safe business. Have started getting some very nice business out of their after parts business as well.

Bus manufacturing. An interesting business that is quite stable. They sell a ton of buses into the US. The US has been making more and more money as the economy improves, and municipalities/states have been buying more buses. Likes the shift they are making into making acquisitions. Have bought a couple of companies over the last few years, including parts makers, and are getting to be a much more reasonable player in the after parts market business. EBITDA per unit, in this last quarter, blew analysts’ expectations away. Dividend yield of 4.55%.

He is frustrated by this one. It is not doing well, which surprises him. The bus business is coming back slowly. There has been a lot of consolidation. Have gone from a North American of 5 players to 3, so you would think pricing should improve. The US is slowly coming back to life, and municipal budgets are back a little bit. Bus ridership is going up. Put in some bids and try to get it cheap. 4.8% dividend yield.

This is a business that did have a little bit of problems 2 or 3 years ago when some of the orders dried-up in the municipalities that buys the transportation buses from them. The problem seems to have been put in the rear view mirror. Recently announced a small addition to their bus production. There is a huge backlog on this company. Over time the margins have improved a little, but they still have a ways to go. As they get more confidence and firm orders, there is still room for production growth increases. Solid yield which is well covered.

(A Top Pick July 5/13. Up 15.9%.) Paying just under 5% in dividends. Went through a period of some difficulty when municipalities were tight on cash. We are starting to see the other side of that. A lot of the buses they produced were contract signed during that time. Some of the newer contracts will carry a little better margin.

In a pretty challenging industry in terms of bus building. Most customers are transits which are funded by state and provincial governments, which have been going through some pretty tough fiscal situations over the last few years. Things seem to be picking up and they have been doing what they can in forming strategic alliances, reducing costs and getting orders. The business is still challenged because of so many different buyers and so many different requirements. On the cyclical business, there could be some upside still. Yield of about 5%.

A late cycle economy play. You are in the sweet spot of that cycle right now. Their backlog looks good right now. Potential for dividend increases. Very well managed. If you have 3-5 years, it is worth adding to.

(Top Pick May 29/13, Up 15.74%) They may not be as profitable this year, but then when the market begins factoring next year’s earnings it will go up.

(Top Pick Mar 27/13, Up 26.95%) Has been cautious about building out their production lines. Thinks you will see an increase in the dividend.

(Market Call Minute) Likes the prospects. Healthy dividend. Green busses are an area of expertise and thinks we will see demand grow over the next two years.