Grande West Transportation Group (BUS.V)

Interesting small cap. A risky name. If they execute on their business plan the stock could do very well. Great little company but the reality is that they haven’t made money yet.

This is a fairly new company. They came up with a new kind of bus, which they developed with the BC Transit Authority and are just beginning to sell it to customers. They recently made a deal with Quebec. They got a huge backlog last year and the stock blasted upwards, way ahead of the company’s actual progress. It has been declining since. He’s buying it now in the $1.65 range. They have shifted management and have a stronger organization, with a niche product that is not served by the big guys like New Flyer. This company helps smaller municipalities and airports with smaller buses that are much more fuel efficient. These are early days for this company.

Went a bit too far too fast. Now it is transitioning in its shareholder base. There is not something negative going on here. It is just a patience thing.

He sees this company as a market darling. He thinks it will have big orders coming from the US this year. The market believes it is possible that New Flyer, or someone else, may take a run at them this year – especially at the low market cap level. Yield 0%. (Analysts’ price target is $4.60 )

He has been looking at it for the last few months. He likes it. They are a basically a start-up. They got some big orders and turned it into a business. It’s still a little on the pricy side but he likes what he sees. He thinks they are onto something. He is looking closely at it in case it drops low enough.

The stock ran way up, and has now pulled back, giving a great opportunity. They've been moving into the US. Hasn't really seen orders ramp up in the US, but expects they have been pushing that through the sales pipeline, and now you are going to start to see sales numbers start to increase this year. Management has been focused on execution and getting buses built on time. (Analysts' price target is $4.33.)

He likes this company. It’s a higher growth company in the bus business. His favourite would be New Flyer (NFI-T). The selloff in this is because of a bit of a transition between different shareholders. Earlier on they had more growth oriented shareholders, and maybe a bit more speculative, but now they are getting older and are producing more buses. Shareholders are now probably thinking longer-term. It looks like they are doing all the right things.

(A Top Pick Feb 28’17, Down 13.75%) It has been coming off quite a bit and he is not sure exactly why. He still owns it. He likes it. They just signed a new deal for their first sales in Quebec. Their backlog is about 270 busses. We will continually see them ramping up. We need to see their margins increase a little. They are almost cash flow positive.

Has done a great job in winning municipality bus contracts. The stock really, really ramped up, and then investors paused a little, and said now that you've got the orders, show us you can make money. They've had 2 good quarters in terms of profitability, so they've proven they can take an order and make money off of it. Now it is just a situation of replacing orders they have, growing their backlog and winning new business. A nice little company in the early stages of growth, but it also means that if anything goes wrong, the very, very high expectations will be wrong and the stock will be volatile if there are any problems.

He just started looking at this company. He is very intrigued by this company. It was getting ahead of itself at $2. They have a huge backlog. He is having a careful look at it.

Doesn’t know this company. It seems the stock moved up and has formed what is called a descending triangle. It formed a floor and then recently breaked down. From a technical perspective this is not a good thing. It could stop at $1.80, or it could be going down to 0.90$. Unfavorable looking chart.

They make smaller busses. They have done quite well. They had a big run and the news is baked into the stock. If they can keep going then they could be taken out. This is probably their plan.

Has been doing really well. They’ve ramped up their plants, got orders, and are now actually building and shipping buses. It is kind of expensive for what is a slow growth business. They are in the smaller, niche buses, which get less competition. Prefers New Flyer (NFI-T), as it is a much larger company which is starting to look at the smaller bus size niche. However, he likes Grande West if you want something a little higher risk with a little higher growth potential in the short term.

(A Top Pick Nov 16/16. Up 92%.) This has continued to do really well. Looking at the evolution, they started off in Canada getting small orders from regional transit authorities, and then would come back with multiple orders for them. They continue to work their way through Canada, and are now in the US with their "Buy in US" certification. They just got a US order 450 buses, and are starting to do the exact same thing in the US.

(A Top Pick Oct 26/16, Up 210%) He continues to own it and over the last year they have continued to execute and do all the right things. There is still lots of room for it to go. They just announced a big order last week and they also have a new bus line coming.