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

(A Top Pick August 29/16. Up 29.36%.) He continues to like this. They make packaging, containers and labels for global manufacturers, predominantly consumer packaged goods. Increasingly they are getting into more advanced applications. Did a deal in December for a British company that makes plastic polymers that are used in banknotes. There is a long runway for growth in this, because only 3% of banknotes globally are made from this high-security polymer film.

Since it split they have also done an equity issue. There was some insider selling. The market should digest that quickly. They have done a fantastic job for a long time. It is an acquisition driven story.

Packaging. It amazes him that there is a very strong contingent of packaging companies in Canada. This one recently bought a UK company that literally prints money. It has relatively strong organic growth, and a very, very active pipeline of acquisitions. A relatively volatile stock, but a company he really, really likes. Wait for a bit of softness before getting in.

A fantastic trend. The chart is showing an upward channel. On a daily and weekly basis, it is sort of heading down, and there will probably be some support right around $64. If you like this name on a longer-term basis, buy a half a position now and, when it makes a new high, buy the 2^nd half.

Material stocks do better between November through to April. This one has extended that all the way through to May. From October through to May, the stock tends to gain an average of about 20%. This one hasn’t seen the down drift that is more typical of some of the cyclical stocks. It has been supported by its 20-day and 50-day moving averages. It is currently testing the lower limit of the trend channel, so you would expect it to get to the upper limit which is closer to $71.

(A Top Pick March 30/16. Up 36%.) Manufactures labels, packaging for US consumer package good companies. They’ve integrated their acquisition and have got a lot of synergies out of it. A great name to own.

A great company. The world’s biggest pressure sensitive label company. Their customers are all the major cosmetic, drug, food type of companies that use that kind of packaging. They are also in shaped aluminum cans and cosmetic tubes. Not a bargain, but a good, long term hold.

It is on her watch list. It has made good acquisitions and good growth, but she would not enter it right now.

This has had a parabolic move over the past few years. The CEO is an intelligent allocator of capital and has done a wonderful job. An $11 billion market cap, and can see it being a $50 billion market cap company in 10 years.

This has been a tremendous story ever since they bought Avery Labels years ago. It has become a real growth story, and would be quite vulnerable to any earnings disappointment. Extremely well-managed. There will be a 5 for 1 stock split coming.

On a seasonal basis, chemical stocks have a period of seasonal strength from around the 2^nd week of October right through until the end of April. After that, they have a tendency to be flat or move lower. This has now reached the end of its seasonal strength, so now you have to decide when to take your money off the table. Hang on until you see technical signs of it rolling over.

A packaging giant, as well as a player in the new polymer banknote material, which they acquired from a partnering type of company. There is going to be a 5 for 1 stock split in a couple of days. Dividend yield of 0.7%. (Analysts’ price target is $337.50.)

A dividend grower, but it doesn’t grow very quickly because the family that owns the A shares doesn’t really need the income. The stock has done very well.

(A Top Pick Aug 29/16. Up 27%.) This closed on a meaningful acquisition of Innovia in December, a manufacturer of polymer banknotes. Very profitable company and a long-term growth story.

A great growth story. Have grown earnings at a 40% pace compounded over the last 5 years. They are in specialty plastics, in packaging, and in labelling. One of the premier Canadian growth stocks. Just closed on a large deal which should be about 12%-13% accretive to earnings. It gets them into these sexy polymer banknotes, which is under penetrated globally but is growing quickly. Dividend yield of 0.8%. (Analysts’ price target is $337.50.)