Boyd Group Services Inc. (BYD.TO)

(A Top Pick Sept 1/15. Up 21.63%.) A consolidating story on body shops. Most of their consolidations are happening in the US. They are now the only public company consolidator.

A consolidator of auto body and auto glass. They’ve exhibited remarkably steady growth. Consolidating an industry in which there are literally tens of thousands of possible acquisitions. This is an industry in transformation because cars are getting more complicated and harder to fix. There is lots of room for growth. Dividend yield of 0.68%.

Auto repair/collision repair shops. Growing mostly in the US. Insurance companies want to deal with fewer suppliers, especially for collision repairs, and this company is able to offer them lower costs, faster service and more standardized service. That is why they are getting market share with insurance companies, and that is driving structural growth. Miles driven has increased in the US which is resulting in more collisions. They are supplementing their organic growth with more acquisitions. The market is very fragmented in the US. Dividend yield of 0.69%.

Auto body repair. They are so widespread, both in Canada and the US, your exposure to weakness to an individual state or province all washes out everything else. That’s what he likes about it. Great company. A really good Steady Eddie and has been a great long-term performer. Very high ROE in very good management. A great long-term buy and hold stock.

Great company, but looking at its valuation multiple, relative to where it was maybe 4-5 years ago, it is insane. Have been a lot of acquisitions along the way, but there has also been a multiple expansion. If you have been Long the stock, great, but at a certain point you have to recognize that maybe you don’t want to be riding this any longer, and so you step off and take your profits.

(Top Pick Feb 13/15, Up 32.94%) Used cars are doing better and better and these guys keep them on the road.

The only publicly traded collision repair shop company. The stock has done extremely well. He has been in this since $15 and they have done nothing but continue to beat his estimates. The stock has come off recently so this is an ideal time. They have compounded their earnings growth over the last 4 years by 27%. This year earnings growth will probably be a little bit less, 18%-20%, but their same-store sales are increasing dramatically. A highly fragmented business where they continue to makes more acquisitions. They have economies of scale through buying paint, etc. Dealing with some of the largest insurance companies in the US. Dividend yield of 0.82%.

A “steady Eddie” small-cap name, which you are not going to get rich from but not going to get hurt. A low organic growth rate story with a rollup potential of auto collision/paint companies. Consensus target is probably less than 10%. Modest dividend yield of 0.7%. Not a name for him.

Great company. Beautiful chart. If you are really looking to have a stock that is going to go a long way, you want the growth rate that this company has, but you want to have room for the PE multiple to expand. Trading at about 20X earnings right now. Rating this as a Buy, but feels his Top Picks have a lot more upside over the next 12 months.

(A Top Pick Feb 13/14. Up 45.53%.) Have over 300 shops in the US, and well over 3000 in the country, which suggests lots of runway to consolidate.

At some point these Short attacks are going to start failing. Technically, the chart shows it is definitely in a trading channel, and is now coming back to the bottom of that channel. $55 would probably be the bottom of the trend. We are in the seasonal period for this stock to do well. Sometimes when you see good technical perspectives like this and it has a strong seasonal period, if it weakens a little further, it is definitely a good time to be looking at it.

He would be a buyer here if he did not already own it. It had a good run over the last year. He would look for the low $50s for an aggressive buy. It was included in the TSX last Friday and so now should be a little more stable in stock price.

Collision repair. 90% of their business is in the US. They are launching an efficiency drive. Margins are below the industry margins, so if you believe they can get their margins to an industry norm, then you are certainly looking at a decent earnings growth over the next couple of years. (She is avoiding owning Canadian stocks going into the election, just in case the Cdn$ gets hit one more time.) Dividend yield of 0.77%.

Businesses in the US. 325 collision repair shops. Insurance companies like to deal with a larger company. There are lots of M&A opportunities for them. They are professional managers of the shops.

A consolidator of auto body shops. Have done a really good job. In the last quarter, same store sales were up over 5.5%. Good management. Very conservative. Majority of their revenues comes from the US. This is one of those stories where you can sleep well at night, as operations have gone extremely well over the years.