Parkland Fuel Corp (PKI.TO)

Recently dropped to around $16 which interested him, but it is a growth by acquisition story, which is a bit of a waiting/guessing game. Expect volatility, but likes the company.

Do a lot of gas stations and convenience stores, particularly in Western Canada. Very cyclical. Tends to go up and down with the summer driving season. Recently missed a quarter and the stock got hammered. Doesn’t see it as being attractive at this time.

Had a bad quarter and the stock dropped from the $20 range down to the $16-$17 range. He is waiting to see the next quarter. Good yield.

Refining company. Raised their dividends marginally a couple of months ago. Last quarter was pretty solid. Last year was very good. Guidance this year was a little bit conservative but this is how they operate. Have done a fabulous job over the last couple of years. You may not get the same growth in the stock price this year as there was last year. Just did 2 tuck- in- acquisitions.

Dividend yield of 6.1%. Current management team has done a very good job of the risking the business and doing some good tuck-in acquisitions, setting it up for attractive growth in years to come.

Has been very happy with this stock. Had a bad quarter and the stock got hammered. Thinks the reaction was overdone. Yield is quite reasonable.

Q3 was a crazy beat on the crack spreads, which should hold into the 2^nd half of 2013. Trades at a pretty good price of 6X 2012 earnings, that blows away out to about 10X post the Suncor (SU-T) contract terminating at the end of 2013. Has been selling as it has been moving higher.

(Market Call Minute.) Likes it but would wait for it to pull back a little.

Basically in the Canadian gas station business. Its roots were in rural Western Canada but is now basically countrywide. Have branched out into some heating fuels for the winter season. Doing a very, very good job. Their plan is to continue to grow and there are lots more possibilities out there for them. 5.5% dividend is quite safe.

Probably going to have another huge “beat”. Good company. Trading at a pretty reasonable value of 6.2X EBITDA. Payout ratio is low at 49%. Likes it. One problem he has is that their Suncor (SU-T) contract ends at the end of 2013, which is giving them a generous crack spread. Try to buy at $16.

Really likes this one. He might wait for a dip in order to get it a wee bit cheaper such as $16, but it is not overpriced where it is now. Likes the 6% dividend.

(A Top Pick Sept 22/11. Up 91.4%.) Just had another great quarter on really wide crack spreads. Unfortunately that is tied to one contract that runs off in 2013. Management wants to double their EBITDA until 2016 as well as doubling the amount of volumes that flow. Still likes but getting a little pricey.

Doesn’t think he would buy at current prices. Have done extremely well at expanding their retail distribution. Have been making money on the refining margin. Most of the good news is in the stock at $16 and above. Under $15 it could become interesting.

Long-term chart shows a long period of consolidation. The drop in 2011 is a false move. One year chart shows in advance from October into February followed by a period of consolidation.