CCL Industries (B) (CCL.B.TO)

Sold half his position close to the top last year, and continues to buy it for new clients. In the near term, it is probably seen the best part of its run. The latest quarter was a little disappointing. Their acquisition of the UK company that prints plastic currency, exposed them to the resin price market, and there was a spike in the price which caught them by surprise and hurt them. A great company to continue to own, but doesn’t think it is going to lead the market like it has in the past.

This has a core business in packaging and labelling. They did a transformational acquisition where they bought Avery Labels, and more recently bought Innovia out of the UK, which literally prints plastic money, in Canada, Australia and the UK. It has come off recently from its highs. They’ve been increasing their earnings and dividends. A very well-run company. Dividend yield of 0.8%. (Analysts’ price target is $68.50.)

This hasn’t done well, but at the top of the chart, it was overvalued. When the Cdn$ was going down this was viewed as a proxy that would benefit from the weaker Cdn$, because a lot of their operations are outside of Canada. Now that the Cdn$ is strengthening, that is going to be a headwind. A good company and doing well in its businesses. It just has to grow a bit by acquisitions. It’s on her watch list as a possible Buy.

A great company. You want to buy this when there are meaningful pullbacks and the underlying trends haven’t changed. They know what they are doing and they add a lot of value. They make smart, intelligent capital allocation decisions.

Some people might be shocked when they see a big draw down like this stock has had, but you sometimes have to step back and look at the bigger picture. In this case, this has basically come back to its trend line and has found some support. As long as that trend line maintains, it might actually be a good entry point.

One of his absolute favourite Canadian companies. It is in packaging and labelling. Currently they are being hit a little bit by the Cdn$ strength. This is a low volatility, non-resource, non-energy, non-gold, non-materials name in Canada which is very rare, and this is good timing.

They are a bit of a victim of their own success. It is priced for perfection so if it ever misses you get a pullback, which it has had. It is a growth by acquisition and it has less impact as you get bigger. It is a decent hold, but not exciting any more like it used to be.

He likes the company. It has done very well and continues to make acquisitions, which they are good at. The stock has come off a bit recently but longer term it is a good company and has increased the dividend, which they have a good record at doing.

An extremely well-managed company with a great track record, but in a very mundane industry of making labels for packaging goods. Very expensive. The type of company people want to own over the longer term. They will do well.

Continues to execute very well. Every time they made acquisitions they announce synergies, and the synergies happen faster and usually happen bigger than what they initially told the market. Recently did a fairly large secondary offering that came out of the principals of the company, where they took some money out. That was a fairly big issue that had to get digested by the market. The stock price has languished a little, strictly on money flow, not because of the business. Management feels there are tons of consolidation left globally.

It is a great company. Return on capital in 2012 was 7% and is now up to 14% and they put capital to work in that time. They pay a dividend as well. It is not too expensive.

A problem with buying this is that it has had an enormous run from its bottom. It was trading at a big discount to its BV, and is now trading at about 4.5X BV, an astonishing run. This is a cyclical stock, long term. It is trading at about its Fair Market Value. It isn’t cheap anymore.

He admires this since it became a label company. It has done tremendously well. Unfortunately, when a company does as well as they have, people tend to build in expectations of growth rates that he does not believe are sustainable for a long period of time. It looks expensive.

A diversified business, packaging, labels, adhesives. A lot of different stuff and a lot of moving parts. Not the easiest company to figure out. You have to put faith in management, which has done a wonderful job of buying companies, integrating them and improving the margins. There is a very, very large runway of growth for them. He likes this very much and thinks it is going to go a lot higher over the long-term.

A packaging company that grows through acquisition and integrates quite well. The family was selling some of their B stocks, and probably was just a function of the B shares coming to the market which suppressed the share price a little. Feels the stock is fully valued, and would want to get it in the low $60 area.