Pollard Banknote Ltd (PBL.TO)

Best known for the instant win lottery tickets. In recent quarters, analysts have picked up coverage. There are very high barriers to entry. They have been making acquisitions recently. They would like to grow through acquisitions. It pulled back recently and he has added to his position.

(A Top Pick Feb. 8/18, Up 7%) It has gone sideways recently but so have many of the gaming stocks. He is sticking with it. He thinks they will go through a number of acquisitions to move the stock price higher.

(A Top Pick Aug 29/17, Up 49%) They are going to expand the acquisition and are one of the top 3 or 4 scratch ticket printers in the world. He thinks the long term outlook is good and management own a lot of stock.

Get in again for 5 months up to 3 years? One of their favourite investments. Not as cheap as it was. It's a good business, management is executing, and it's in a strong market position. Third largest player globally. Holds contracts globally for lottery tickets, a steady growing market, even in a recession. Poised to continue to grow. Can hold it for the next 3-5 years.

The stock has gone up from $6 when he recommended it to about $22, but that has been through organic growth and acquisition. The revenues have kept up with the stock price, so today it is trading at almost the same multiple as it did a while ago. He anticipates additional acquisitions and thinks it is a well-run business.

The majority of their business is the scratch and win and instant peel tickets. They see a lot of growth there. They have become more aggressive on the inorganic side with some acquisitions. (Analysts’ price target is $20.33)

Recently initiated a position in this. They are in the very exciting world of scratch tickets, lottery type tickets. They have a traditional business line and are taking the free cash flow out of the excess cash flow and are making acquisitions in their space. This meets his criteria.

A leading lottery to more than 60 lotteries worldwide, located in Winnipeg. They’ve been making acquisitions. Dividend yield of 0.6%. (Analysts' price target is $17.63.)

Lottery ticket manufacturer. He has owned it for a while. It is not that well followed but a couple of analysts have written reports on it. Going forward they are looking for other acquisitions that are businesses they can get into, related to lotteries. They are dominant.

A really interesting company and not well known, but the 2^nd largest producer of instant scratch lottery tickets globally. Although a value investor, he likes this more now at $13 than he did at $8. They just made an acquisition and are expanding their business at video/lottery terminals. Has a new facility they built in the US to expand production capacity of instant scratch tickets by 35%. There are very high barriers to entry. Trades at only about 7X the EBITDA potential over the next couple of years, which should be more like a 9X multiple. Dividend yield of 0.9%. He can see upside to at least $18 a share. (Analysts’ price target is $15.50.)

(A Top Pick Jan 28/16. Up 9%.) Thinks the stock should be a lot higher. They are one of the dominant global players in printing scratch lottery tickets. The industry has grown at about 6%-7% a year over 30 years. Trading at a pretty reasonable valuation.

(A Top Pick Jan 28/16. Up 10.77%.) A great little business run up of Winnipeg. Owners have a fair amount of equity stake along with the shareholders. One of the largest producers of instant scratch tickets globally. A growing business that is steady. Not expensive. Recently had a plant expansion in the US, which gives them a chance to grow.

(A Top Pick Sept 3/15. Up 11.25%.) He still likes this and has been buying more recently. Thinks there is a lot of upside. They’ve undergone a fairly significant capital program, where they have built new manufacturing facilities. Their primary business is printing scratch lottery tickets, and are one of the dominant ones of 3 or 4 players globally. They have proprietary technology and trusting long-term relationships with lottery corporations. Not an expensive stock, and has a good future in front of it.

Scratch lottery tickets. One of the top three manufacturers in the world. It is an oligopoly. Barriers to entry are very high because of security concerns.

Originally a great grandfather started to do bank notes, and then switched into coins. The 2 Pollard brothers (grandsons) are one of the 3 world leaders in lottery scratch ticket production. They have 22% of the world market. Dividend yield of 1.92%.