Parkland Fuel Corp (PKI.TO)

(Top Pick Nov 2/16, Down 15.89%) It is just the sector right now. They are a great company. Nothing to worry about.

Sold his position when he was concerned that their acquisitions were pretty big bites, creating a lot of debt. However, the company is well-run. He likes their business. A well-run company. He is watching this. Dividend yield of about 4.5%.

He likes this company. Extremely well-run. They just completed the acquisition of the BC assets of Chevron. Have grown very smartly through acquisitions. He doesn’t own this currently because he would sooner be paying in the low $20s rather than the high $20s.

(A Top Pick June 17/16. Up 42%.) Fuel distribution across Canada with a bit in the US. They are in the propane distribution business and home heating fuel business, and have recently just bought a refinery. They have even more room to grow, because there are a lot of urban markets that they are not in yet. Still a Buy.

This has been a good growth play. They have a leading market position. Have done very well with the acquisitions they have made. Feels this has a relatively good outlook from here. Trading at almost 45X forward earnings, which is pretty rich. Dividend growth continues.

This has grown like Topsy. He likes the way they picked up various gas stations from different sellers. Feels that they have good, long term growth prospects. With the situation in Alberta, he sold his holdings, but this company skated right through that. A good, long term growth company.

This is an operator delivering gasoline to retailers and corporations. A well-run company if you want a position in this space.

This has been a good stock. They are money makers, but it is not exactly a big growth space. The absolute number of gas stations is shrinking both in Canada and the US. After their most recent acquisition, this company will not be able to grow in Canada any more. It will probably turn into more of an income vehicle at this stage.

He has been a long term holder for 15 years. He still buys for new clients. It is a different kind of stock because it grows by acquisition. They distribute fuel at the retail and commercial levels. They have recently been a big acquirer. They are buying the Canadian assets of CST, Pioneer, and Chevron Canada. This is a highly leveraged company, but uses it well. They raise their dividend every year.

Shares have been halted in that they are going to purchase Chevron’s Canadian assets. Chevron (CVX-N) has been a consistently really good operator. Overall that is probably a good thing. Parkland has been a good company for many years and has been a good dividend paying company.

Big in the gas station business with some wholesale and commercial businesses as well as propane distribution. They are going to buy CST assets in Eastern Canada. There is room for a lot more acquisitions. It has now broken out. They raise their dividend modestly on a regular basis. (Analysts’ target: $32.25).

(Market Call Minute.) Bought a massive expansion of a gasoline infrastructure in the US, which is really going to drive their earnings forward.

Just made some great acquisitions, so their balance sheet is a little bit bloated. He sees really strong earnings growth because of their acquisitions, 30% over the next couple of years. 90% payout ratio which continues to come down. It is expensive at these levels.

Gas station and convenience stores operator. Its primary base has been in Western Canada, but are on the verge of a transformational deal. Alimentation Couche-Tard (ATD.B-T) is making a $4.5 billion acquisition of CST Brands (CST-N), and in order to allay the fears of the competition Bureau, Parkland is going to be buying a few hundred of the CST Brands Canadian stores. It looks like it is going to be about 13% accretive to earnings. His preferred way of playing convenience stores remains Alimentation Couche-Tard as it is larger and more geographically diverse with a better and more established management team. If you own this, he would Sell above $30. In the mid-$20, it looks more compelling. (See Top Picks)

He is short. Fuel retailing without refining margin is not a great business. He believes fuel volumes will decline. With their last few acquisitions they moved into more urbanized regions and they took on a lot of debt.