Ian FungCCL Industries (B)CCL.B.TOHOLDFeb 21, 2020

Nowhere near the rollup that it used to be. Not really a compelling, multi-year thesis. 

They had good Q3 results. They will continue to buy companies and buy back stock.

Have a good track record of making acquisitions to enter new markets. The balance sheet is clean and are buying back shares. As they buy more companies, shares will rise.

Owned it for a long time. They make labels for various sectors. They operate around the world. There's so much acquisition potential. Is showing good organic, topline growth. Is cyclical. The balance sheet has improved, buying back shares and raising the dividend. Is waiting for the next acquisition that will boost shares.

Its businesses depend on consumers, so some growth might be capped. Pullback could be a time to look at it, but has already done pretty well over the medium term. Steady-eddy with potentially high valuation. Keep an eye on.

Happy that stock price has picked up. An investor needs to ask about the valuation and fundamentals. Order book is back to normal levels. Buying back stock. Anticipates $4.50-4.60 EPS this year, which will continue to grow.

Waiting for it rev up its M&A. Serial acquirer, great integrator. Perfect balance sheet, terrific management. One of the highest quality companies in Canada, should trade ~$100 and 20x earnings. He owns a big stake, loves it long term.

Strong company that has admired from afar for a long time. Expensive valuation, but continues to grow. If buying now, would expect to hold for the long term. 

Small company, still in growth mode. Growing dividend ~10% a year. Operates in similar segments to MMM.

Good company, CEO has been there a long time. Family controlled. Capital allocation was really good for about 15 years, then started getting more hit and miss. Low organic growth industries, not much more than 3-4%. Acquisitions have let it grow faster than that.

Earnings growth has not lived up to historic record, starting to change. Back-to-back quarters of beating earnings expectations. He's starting to do some research on it.

Picking up small industrial companies has been a great strategy, while the last few quarters have beaten expectations. Well-managed, though economically sensitive. Likes this growth-oriented industrial.

Balance sheet is back in perfect shape for acquisitions. Buying back stock, and at this $72 range must mean there's confidence. Loves its capital allocation. Up 23% YTD. Used to be one of the top serial compounders in Canada, thinks it will return to that. Yield is 1.57%.

Guiding long-term for better-than-GDP organic growth. Acquisitions, cost control, buybacks, and dividends could provide double-digit returns for a very long time.

Global. Big partnership with LLY, making adhesives and labels for weight-loss drugs. Inexpensive. Balance sheet now perfect. People are waiting for acquisitions. Strong management. Long runway for growth.

Pandemic messed up everything. Overstocking led to fewer sales. Will be rectified going forward. A day away from going up 10-15%. Acquisitive. Stock's gone nowhere, but business has improved, and this excites him. Juicy targets. One of the cheapest stocks he owns.

Has been a great story by acquisition. His only worry short term is that it's hugely tied to consumer demand, which will slow down, highly cyclical. You can own a partial position here, but that's it.

Impressive Q1 results. Sales grew only a bit in Q2, but beat expectations and earnings. Higher rates impacted consumer spending. Really strong balance sheet. Light yield of 1.7%, but has increased dividend over 5 years by 110%. Fundamentally 9/10 for her.