Stella-Jones Inc. (SJ.TO)

A very steady business. Very steady contracts. Working their way through an acquisition that gave them good revenue growth this year. In the last couple of days people took profits. This one traded sideways all summer and then broke out, pullback and it is a good entry point. A growth story.

Became 36% of his portfolio. Should this be trimmed or is it a company that he should continue to hold. 36% of a portfolio is way too high. He generally doesn’t sell in November/December because he wants to defer taxes to the next year, allowing him to earn money on the money.

Very, very well managed in a business that is starting to hit the sweet spot in terms of spending. Railway ties and telecommunication poles basically. They are the “go to” player. Bought a lot of companies to consolidate the space and now sector spending is starting to increase. If you own, he would not Sell as it is one of the better managed companies in Canada. Space looks good, the dividend is okay, balance sheet is okay. There is a lot to like about this company.

Very well run company and it’s in the right place at the right time. Suddenly railways are such a hot item and this company does repairs and sells railway ties. ROE is not as high as he would like but, this is a great Buy and Hold for a long-term investment.

Makes telephone poles and rail ties. There is a full infrastructure build out by rails and telecommunication companies and this company was in the right space at the right time. Have been pumping up their dividends. Earnings have been accelerating. This is a classic investor dilemma. When you have a company that has done so well, paid lots of money out in dividends and raised their dividends rapidly, when do you get out? Doesn’t think it’s over but wouldn’t expect the same kind of gains that there has been over the last couple of years.

Wood treated utility poles. Not a lot of volume. Doesn’t hear much about this company. Reasonable good infrastructure play with good dividend. Not a bad little company.