Savaria Corp (SIS.TO)

One of his biggest positions. They have done well in terms of growing their business organically. They make mobility aids. They acquired a company in the US that makes mattresses for institutions. Management have done a good job of growing SIS-T organically, but now are making a very opportune acquisition in the US. The stock is not cheap, but the demographics are blowing a huge tailwind into it.

He likes the story. They do chair lifts, etc. for people who want to stay in their homes. The multiple is getting quite stretched. Raised some money and then did an acquisition. Thinks the acquisition is going to be highly accretive and make it a much bigger company. Likes management.

This helps with wheelchair assess ability, and things like that. A very demographically advantaged business for the next several years. It seems to be quite well-run and has insider ownership. Certainly seems like it is worth owning.

(A Top Pick March 3/16. Up 152%.) Stair lifts and elevator lifts, as well as van conversions to help people with disabilities get into their vehicles. Did an acquisition of the van conversion business, which almost doubled their business. An expensive company, but also one of the better companies on the TSX. They have a consistent demand coming from the baby boomer demographic. While it looks expensive today, they could do an acquisition tomorrow and it would look pretty cheap again.

(Top Pick May 6/16, Up 61%) Mobility solutions. They won a contract in China. It is one of the most solid management teams. Earnings are solid and the outlook is great.

One of his biggest positions. A great company. Manufactures accessibility equipment such as stair lifts, home elevators, ramps, vehicle conversions, etc. It is the only investable company on the TSX that gives you exposure to the sector. Very well-managed. The stock is a little pricey, but you are paying for the scarcity value.

Manufactures lifts, etc. for homes for people with disabilities. Has traded sideways for a while, but earnings have been very strong, and the demographics are great. Thinks they are looking to make acquisitions and put them together with what they already have, creating synergies to increase margins. Feels the margin profile is going to go up over the next couple of years. Not extremely cheap, but this is because they have been able to grow earnings rapidly over the last couple of years.

A very interesting little Canadian company out of Montréal. Has done a great job of growing their business. They provide chairlifts for old and disabled people in homes, and small elevators for residences. Have been growing nicely over the last several years. He likes the business longer-term, but the stock has had one heck of a run, and the stock is pretty expensive. If you own the stock, he would be trimming, if not Selling it.

This has been a phenomenal company and continues to grow. Demographics are in their favour, and there is tons of room for it to continue to do well longer-term. Valuation has always been up on this, trading at about 15X EBITDA. It is never cheap, but that is often the case with these companies that continue to grow. He wouldn’t be surprised if they continue to grow organically as well as with acquisitions.

Makes equipment for people with limited mobility. They acquired Shopper’s Drug Mart’s home division. One of his favourite companies in the healthcare/industrial space. Demographics are in their favour. Has a great balance sheet and good management. Hiked their dividend by 30% last year, a very significant statement by management. This is one of those long-term names that he thinks will continue to make good acquisitions and continue to grow, and continue to post higher earnings.

Chart shows a strong upward trend this year, with a recent break down followed by an upward move. It has now formed a little base at around $10.60. You could take an initial position, and if it got down to the $10.60, take the balance. It is always good to pay more for something, as it gives you a confirmation.

One of his top 5 positions. Insiders sold a small amount of shares, but they will be there for a long time. They sell bread and butter equipment in the health care industry. They are doing a great job, growing their distribution in Canada and the US. They have significant sales in the US if you want exposure to healthcare post-election.

This does elevator lifts and chairlifts for elderly and disabled. He likes the demographic wave they are facing. The company has executed very well. They just released their 2017 outlook, which was about $10 million lower than their previous outlook. Not a game changer for the company, but is probably the 1^st execution flaw that they’ve had, so it has pulled back a little. Thinks they are itching to do an acquisition. A good entry point.

A long-term demographic story. They make stair lifts and elevators, as well as conversions to vehicles for mobility. From a demographic standpoint, the company will continue to grow as their market grows. It is starting to get pretty expensive. He sold his holdings for valuation. There has always been talk of them doing acquisitions. They’ve done some and are pretty selective. Trying to get it on a pullback, but if you can’t do that, perhaps buy a partial position.

Stair lifts, etc. This one slipped through his fingers. They have had a really nice run. Their cash ROE is 23% 3 years running, above the level that he likes to see. If you own, continue to Hold, and if you don’t own look for a pullback.