Parkland Fuel Corp (PKI.TO)

They own the entire supply chain. They are making money on the crack spread buying cheap crude and putting in their refineries and distributing through their network. Yield of 2.7%.

They've done a great job expanding, including a big, very recent purchase in the Caribbean. They can go global. It's a steady business and well-managed. (2.5% dividend yield, Analysts' price target: $50.43)

Sold out a couple of years ago, and he regrets that. Into propane, diesel fuel, distribution. Yield is OK, just under 3%. Fully priced right now. Good company if you’re buying for the long term. In a niche that hasn’t been affected by oil price.

He owned this for a long time but sold out as its price rose. His worry is that, with all the acquisitions they made, their debt has become huge. A slowdown, or a rise in interest rates could be very difficult for them. The market is ignoring this for now, partially because Parkland has made interesting acquisitions, such as a refinery, which came with Chevron’s retail operations. They buy Canadian oil at a discount, refine it and sell the gasoline at world price. The margin is excellent at this time. World oil price is at 4 year highs, but that might not last.

They recently acquired some gas stations from Couche-Tard. Their stock price has risen faster than Chouche-Tard's
recently. They can acquire and integrate companies well. Richly valued now, so wait for a pullback to enter a position. Definitely hold it.

It is a very large company. You have probably bought gas from them and they run the 'C' store behind the counter. They have been very acquisitive over the last 18 months. They can roll out more private label products, open more 'C' stores and make acquisitions to grow. They have blown away analysts' estimates and will probably do it again. (Analysts’ target: $44.50).