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

A tremendous allocator of capital. They’ve made some great acquisitions. This is the world’s largest maker of specialty labels. They make banknotes, a very specialized product. Have grown both organically and through acquisitions. Dividend yield of 0.8%. (Analysts’ price target is $337.50.)

A company she would like to own. The stock has done very well. They’ve made some very successful acquisitions, and she is waiting for a pullback.

A well-run Canadian company. Involved in packaging, and recently developed some innovative technology aspects in packaging. He likes the company, but at these prices this would definitely be at least a Hold if not a Sell. It is really rich compared to historic trading valuations.

This definitely is in an uptrend and has a great looking chart. A little jump at the end of the chart indicates a possible or probable overbought situation. If you own the stock, continue to hold it. There will probably be a pullback where you could jump in.

He does not know the details of how they are going to split it. There is research that shows there is a perception that you can buy more shares after a split. This is a human condition. There is nothing beneficial in fundamentals. Trade it if you want but because you like the company and then own it post-split, but don’t buy it just because it is going to split.

It is never too late to get back into a good name. It is unbelievable how things have gone for them. They made brilliant acquisitions. It is not cheap but they have proven themselves. He would prefer a similar company that is in his Top Picks today.

One of his favourite names. A consumer staples name where they are doing containers, packaging for consumer discretionary products. Made some interesting acquisitions. Good capital allocator. Expensive, but it is always going to be expensive. This is worth owning.

It just announced a stock split. It is a reflection of how well they have done. You could regard this as a niche product with high barriers to entry. It is probably ahead of itself at present. You might want to take profits.

(A Top Pick Aug 29/16. Up 20%.) Involved in containers, plastics and packaging. It has decent mid-single digit organic growth, but has been a tremendous “growth by acquisition” story. They acquired Innovia last year, which should be about 12%-13% accretive to their earnings.

In containers, plastics and packaging. Very profitable. It has grown earnings at a torrid pace, 40%+ compound growth rate over the last 5 years. Trading at about 20X earnings. They just closed on the acquisition of Innovia, which is quite profitable and has some very attractive segments such as polymer banknotes, which are very under penetrated globally at about only 3%. Dividend yield of 0.8%. (Analysts’ price target is $325.)

This is having a 5 for 1 split in May. In terms of valuation, it is quite reasonable. A very acquisitive driven story. Feels this will continue to deliver, both on the organic side, but much more so on the M&A side.

(Top Pick Mar 30/16, Up 20%) They had just announced te checkpoint acquisition. RFID tags would now be put in products by CCL.B-T. They integrated the acquisition and got synergies. It is a relatively defensive name that is relatively stable.

You make money buying it before the split.

It does nothing fancy. It is the world’s largest manufacturer of pressure sensitive labels as well as aerosol cans. They are good at what they do. They did some very strategic and opportunistic acquisitions over the years. They raise their dividend over the years and he continues to buy it for clients.

Had owned this from $36 to over $200, but sold it recently and bought Winpak (WPK-T) which he likes better. It has more organic growth and trades at a lower multiple. CCL has done a great job integrating acquisitions. A very well-managed company, but finds it very expensive right now.