New Flyer Industries Inc. (NFI.TO)

Well-run company. Have some good prospects ahead of them. The dip in November had a lot to do with the US government getting hung up creating all kinds of noise. That is now behind us. Have good backlog and will continue to grow that.

Mainly a bus manufacturer. Likes the consolidation in this business. There are now a smaller number of players in the industry and hopefully it is less competitive. There is an emphasis across North America on improved public transport, however, a lot of governments are feeling a fiscal squeeze so there are some headwinds for them. Longer-term, this is a good company. Yield of 5.6%.

(A Top Pick Dec 14/12. Up 34.42%.) Still struggling. 2014 will be a particularly great year. He classifies this as a Hold. Expects to see higher margins in 2015. Once they get through their backlog in 2014, with an improving economy, he sees this is eventually going to $20. 5.5% dividend.

(A Top Pick Dec 6/12. Up 38.33%.) Pays a yield of about 5.5%. Stock has had some difficulty in the last 2-3 weeks. Reported their 3^rd quarter results. Results were fine and backlog was fine but there were some concerns. Had been on a production path of about 48 buses per week, which had expected to be bumped up but the company is going to stick with the 48 buses. There was also some concern about margins. This has made for a more attractive entry point and this is a great opportunity to step in.

Have done fairly well over the last year or so and he thinks this will continue. Recently purchased North American Bus Industries, which opens them up more to parts and service business as well. Municipalities are starved to add capacity but can’t afford it at the moment. However there will be money directed towards transportation. Good yield of 5.2%. Would like to see it under $10.

Recently struck a deal to buy North American Bus Industries. That is their 2^nd deal this year. 5.28 % yield. Trading at about 11.5X next years earnings. Have been held back a little bit by funding issues of municipalities, but that is going to work its way through in their favour as fleets age. Backlog has remained strong. A number of analysts have increased their targets.

Had some management changes a few years ago bringing in some people who were much more production and operation oriented. There is going to be a big build out of transportation systems somewhere along the road here. Currently North American municipal governments are quite strained in what they can spend right now. This is in a good position to take advantage of this long-term.

This is kind of a play on the US recovery. Sell buses to transit commissions, which are ultimately funded by the taxpayers. Had a very rough go of it over the last 5 years but things are getting better. Pays a nice 5.7% dividend which he thinks will go up over the next few years. Competition is disappearing. Brazilian bus-maker, Marco Polo, bought a 20% stake in this company at $10.50 a share.

Has done fairly well. They are on the right track. Brought in new manager about 3-4 years ago, that was much more production efficiency oriented. Backlog has been growing. Municipalities are investing more and more into mass transit and this company is extremely well-positioned to take advantage of that.

Order book started to pick up in the 2^nd half of 2012. Also announced a very strong order book in January. They are at the mercy of their customers and large orders can sometimes be delayed, which has been part of the issue. Looks like they are smoothing out that process. Made an acquisition of the Daimler buses after they vacated North America. 5.5% yield. Trading at less than 10X next year’s earnings.

Municipal governments being strapped for cash is still a big problem for them. Ironic because there is a lot of unemployment and people use mass transit when they can’t afford to drive. Thinks it is starting to turn around here. Expecting stronger earnings. Nice dividend of about 7%.

Has been a laggard. Had concerns about deferred orders which are book to bill this quarter. Had a dividend decrease that was planned a year ago. 4.8% dividend is safe.

Has struggled as of late. Softer second quarter. It is in good shape. They are at production levels that will allow them to maintain the dividend. As municipalities get funding behind them you will see the order book pick up. 8% dividend.

Stock has been disappointing over the last year or so. At these levels, it is a Hold. Dividend will change in August as that is the anniversary of when they converted from an income trust. The 13% dividend will come down to about 9% but still a very reasonable yield. Order book was up dramatically from what the analysts were looking for.

Bus manufacturer. The problem is that municipal budgets are just not there for new fleets. She has a small Short on this company. She just doesn't see any positive news because of government restraints globally.