Boston Pizza Royalties (BPF.UN.TO)

(Market Call Minute.) If it pulled back, it would be something he would add to.

This is a pretty good entry point. If you can be patient, pick away at it through the summer, which might be a good way to accumulate a position.

Boston Pizza Royalties (BPF.UN-T) or Brookfield Property Partners (BPY.UN-T)? 2 very disparate companies. This one has a very strong yield. As a royalty, it pays out a lot of its earnings back to investors, while the other has not as big a dividend, but has more room to grow it. He would tend to own the one that has the opportunity to grow its earnings, which is probably going to win most of the time. If he had to pick one of the 2, he would go with Brookfield.

It is difficult to predict where the consumer is going to channel their preferences. With a slowdown, consumer sensitive stocks have more risk than they ever have. He would consider trimming your position.

Had a very soft quarter. A big chunk of their business comes out of Alberta and sales have been slow in that part of the country. Wait on the sidelines until you see what happens in the Alberta market. (See Top Picks.)

He is very comfortable with it and has a yield over 6.5%.

There is fierce competition in the entire food sector.

Fantastic management. Looks for accelerated earnings growth, but they have every consistent growth. 5.9% growth.

(Market Call Minute) Play on quick serve sit-down restaurants. Very good at what it does.

Have done a fantastic job of growing same-store sales in the 2%-3% range, which is pretty good in a somewhat tough economy. This is kind of a hangover from the income trust era. Pays on virtually all of its earnings to shareholders and holds nothing back. His concern is that when interest rates start to rise, it’s a dividend stock, and that could cause it to drop a little bit. Also, if they need to invest more capital, that might imply a cut to the dividend at some point, but certainly not on the horizon. Doesn’t see a lot of upside from here.

Has gone up about 4% in the last 10 days or so. They are able to buy back 7500 shares per day, a quarter of what is being traded. What does this mean and how should a 2% trailing stop be managed? The generally accepted rule is that a share buyback is a sign that management believes the company is undervalued and they are exercising their right to buy shares back while they are still cheap. Sit back and enjoy the ride as the share price goes up.

A royalty business and they don’t actually do anything, just sell franchises. As new restaurants mature, they get put into the pool. Wonderful business. Not growing very quickly and given the appreciation of the stock price, he wouldn’t be a very aggressive buyer here. 5.8% yield.

This is a franchise that is growing very, very nicely from a same store sales perspective. Well managed. 6.6% dividend.