Michael Simpson, CFAWajax CorpWJX.TOHOLDApr 12, 2012

A play on where the next bull market's going to be, and that's going to be cyclicals. A cheaper valuation within the group.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Cheap at 11x earnings. A cyclical company that has never reached over 20x multiple. They continued their dividends during the pandemic. Sales missed but EPS beat by 20%. Cash flow is good. The small size presents some risks but it is doing many things right. Unlock Premium - Try 5i Free

It'll be flat this year. It's very illiquid, so likely way cheaper than it ought to be. Good balance sheet. Cheap at 8x earnings. The payout ratio is safe. You can buy and win with this.

(A Top Pick Feb 17/17. Up 8%.) Sold this a while ago to reduce his holdings in the infrastructure space. He still likes the sector immensely. Chart shows a reverse head and shoulders. If this can get above $25.70, he would like to buy it again.

They cut their dividend, but he sees this as pretty safe with a 60% payout ratio. He models 45% EPS growth. Their balance sheet has gotten much better. The cycle is just starting to come on with equipment makers, and is trading at about a 6-point discount to Finning. Trades at about 13.8X with Finning at around 19X.

They have three divisions. Industrial components, power systems and equipment. They have had a huge run up based on earnings. They report in a couple of weeks. It may be necessary to sell after that.

They are adamant they cannot cut the dividend. He thinks they should because the cash flow does not cover it. It is not on his list of safe dividend payers. He is short this stock.

This is a really volatile space. He likes TCK.B-T instead. On a short term basis it came right up to the break down level. It is at the bottom of a previous trading band. We are right at support here.

(Market Call Minute.) Interesting company at this price. Have been doing tremendous cost cutting. At a level right now where it is starting to look very interesting again if you are patient.