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TSE:NFI

New Flyer Industries Inc. (NFI.TO)

22.69
-0.09 (0.40%)
as of Jun 19, 2026, 8:00:00 pm Market Open.
378 watching
0
COMMENT
This was a big win for him years ago. They were hitting some problems. The back drop should be good because buses are old and replacement demand should be good. But demand for new is shrinking in the industry. He does not like the name particularly now. He feels the dividend is probably okay.
BUY
He doesn't follow this, but the $31 level is key. NFI has held this for six months. That said, it was well over $60 at the start of 2018. Infrastructure money fell away. $40 is resistance. He has a buy signal this week as indicators are turning up.
BUY
They announced last week another acquisition out of Scotland. They paid a fair multiple. It keeps their debt level at a reasonable level. This is a game changer that will see the stock rise substantially over the next few years.
TOP PICK
They just announced another acquisition -- this one out of North America. It now has a decent multiple. Analysts have raised estimates by 15% for next year following the transaction. Yield 5.09%. (Analysts’ price target is $43.43)
BUY
It was one of the Canadian darlings but has suffered since. It got ahead of itself on a valuation basis. As soon as they had some bad news, the market really punished them. At these levels, they are real beat up and sees this as an opportunity. He thinks you will be happy owning this in a year's time.
BUY
It is attractive at this level. It is going to do well going forward. He doesn't know how well relative o other stocks. He likes another similar company but he is OK with this stock.
COMMENT
Has come off a fair bit. One factor could be that US federal government helps pay for municipal buses, and this expires in 2020. So long-term funding is in question. Stock got ahead of itself in the last couple of years, so now it's normalizing.
PAST TOP PICK
(A Top Pick Mar 14/19, Up 7%) He got it the day after a bad earnings day. His timing was good. They are into long term electrification of our transit system. Public transit is an important part of a sustainable economy. It pays a really stable dividend.
WEAK BUY
It has not had a great year. He sold half the position at $50. It is very competitive in a consolidating industry. Under $30 he was thinking a adding to his holding. Longer term, this could be a buy today. Recent deliveries have been below expectations, but this can change quarter-to-quarter. The coach side may becoming more competitive, but they still do well in the US markets. One of the better industrial companies in Canada.
TOP PICK
He never understood its run-up or why investors are abandoning it now. It's off 50% from its high, yet are increasing its dividend, trades at 10x earnings, and pays a 5.1% dividend. The rapid urbanization of North American is a tailwind, and governments are buying zero-emisson buses that NFI builds. (Analysts’ price target is $42.63)
DON'T BUY
We had a short on it last fall. At the time, he thought the valuation was rich. They missed two straight quarters last year, but they are better shape now. He doesn't see much growth here in this sector. Also, there's lots of competition; they lost some bus contracts.
PAST TOP PICK
(A Top Pick May 17/18, Down 41%) They had challenges that spooked investors. He thinks it is cheap at 9 times earnings and does not feel the dividend of over 5% is at risk. He will continue to hold it. It is cheap here.
DON'T BUY
Their back orders are down, but isn't totally sure why it's taking such a hit. Don't buy until it breaks out. OK yield and top management. He likes it and is waiting to enter it. It needs to build a base then breakout.
COMMENT
The issue is that the stock ran up on valuation and came off with cyclical stocks. He would prefer LNR-T but both will recover over the next couple of years.
DON'T BUY
It was a hot company. Their balance sheet worsened as sales slowed.
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