Boyd Group Services Inc. (BYD.TO)

(A Top Pick June 6/17 Up 9%). They continue to do acquisitions and the business is growing. Everytime there is bad weather this auto-body business does well. Over the next decade their business may be threatened by autonomous driving vehicles.

(A Top Pick March 29/17, Up 30%) They have been very, very consistent over 10 years. Some think collision repair will become a thing of the past with self driving cars, but he disagrees.

Although a boring story, he says he has been buying this for quite a while. They buy and consolidate auto body repair stores and don’t sell stock and get cheap debt – the earnings go right back into the business. They deal with insurance companies, who love this business model. He does not expect it to double in the next year, but 20% is likely. Yield 0.5%. (Analysts’ price target is $118.50 )

Loves it. They grow by acquisition. The U.S. will do better than Canada, and 95% of their business is down there. Their auto collision and glass repair business has benefited from recent inclement weather causing auto accidents.

An auto body company, a very high ROE generator. The auto body business is fairly fragmented and this company has been a consolidator. He picked this because they have come off from their highs of about $102. A very, very well-run company. Dividend yield of 0.6%. (Analysts’ price target is $110.)

She would be comfortable putting new money to work at these levels. She keeps buying this until something goes wrong, and there hasn’t been anything that has gone wrong. The last quarter was a little weak, but was really nothing to do with anything but the weather, which was too good. They have a lot of acquisition opportunities.

(Top Pick Apr 4/17, Up 12.67%) There are typically more accidents in some weather conditions and this benefits the stock. They are a consistent performer year after year. Self driving cars are seen as a long term risk to this business, but that is 10-15 years out. Shorter term there is currency risk. From an operations point of view they have done an excellent job. He expects double digit rates of return as they continue to acquire and increase store locations.

This has gone up 700% in the last 6-7 years. Last week they did their biggest acquisition and doubled their presence in Canada. They’ve done great acquisitions. It is slow and steady. Have executed very well. A solid, well-managed company. They have a very strong balance sheet. The company, with their last acquisition, has over a billion-dollar market cap, which takes it to the next level in Canadian investing. Dividend yield of 1%. (Analysts’ price target is $110.)

In the auto repair collision business. Grows very strongly organically, but also much more M&A driven where they are constantly making acquisitions. Approximately 90% of revenue is from the US. They are kind of guiding that the next quarter is going to be a little weaker than expected, particularly coming off a very strong quarter last year. Valuation is not cheap anymore, but they have always continued to deliver. Dividend yield of 0.6%. (Analysts’ price target is $96.)

They came out with their earnings report last week with good results, but cautioned of headwinds ahead. They are an auto body company and this is a fragmented sector. They are looking to increase same store sales and are a consolidator in the industry. (Analysts’ target: $96.00).

(A Top Pick Jan 8/16. Up 42%.) A great company. They’ve done a great job in terms of same store sales growth. Management is A+ and he has the utmost confidence in them. Stock is not trading at a low multiple, but over the last 5 years their EPS growth has grown by 25% compounded annually. They’ve done a very good job and there is still a lot of consolidation going on in the US. They are still talking about a lot of growth over the next couple of years.

A roll up of auto collision centers. He does not like roll ups. There is no real barrier to entry. They are gaining more and more market share from insurance companies, however. There may be an interesting short sometime in the future when cars drive themselves and don’t run into one another. It is not a bad time to take profits.

He likes the stock and has held it for a while. It scores in the top 10%. They had a beat recently. The balance sheet is in great shape but they don’t pay a dividend. It has good price momentum.

This is still in a very fragmented industry, where there is not a dominant player. There is still room to consolidate the US repair business, and he likes this very much.

(Top Pick Jan 8/16, Up 34.31%) They have gotten bigger. He has had a history with these guys. He has not sold a share. Same store sales growth is up 5%. It is one of his top ten holdings. There is a lot of running room for them. They are continuing to make acquisitions and can continue to grow. It is one of the A+ management teams in North America.