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

There is a rotation going on. CCL.B-T shows up in a materials index, so if the index is running, managers need a source of cash so sell this one.

The biggest pressure sensitive label company in the world. They are also in aluminum aerosol cans as well as cosmetic tubes. All of these are non-cyclical, and continue to gain market share. He likes this and continues to buy it for new accounts, because it has good growth ahead of it.

(Market Call Minute.) Very much of a growth stock. Ever since they became a label company, it has done tremendously well. Very well-managed, but you have to be prepared to pay up for the hope of that continued growth going forward. He is not sure you could justify paying for the multiples that it is at.

(A Top Pick March 2/15. Up 76.15%.) One of her “growth by acquisition” stocks. The attractive part about it is that they service both consumer and industrial businesses. Really well diversified across a broad range of industries. No matter what the economy does, they’ll have some sectors that will continue to do well. Very solid management team.

(Top Pick Aug 29/16, Down 2.37%) Will be reporting earnings shortly. It is a growth by acquisition story. Very strong operators.

(A Top Pick Oct 28/15. Up 32.79%.) The big news is that they have done a $500 million raise and have done about $1 billion worth of acquisitions, so this is an M&A machine. A Canadian company in a niche area.

(Market Call Minute.) A great business, but he owns companies in the similar space.

This company makes packaging and labels, and their client base are large consumer goods packaging companies. A growth by acquisition story, and recently acquired Checkpoint Security Systems. Have been growing earnings at a 40% compound rate over the last 4 years. Very solid execution. Lots of runway to keep acquiring and consolidating a fragmented industry.

It is a very good company. Pressure sensitive labels. They organically grow at 4% a year, have 6% cash flow yield for acquisitions, and are making a total return of 10%. Wonders if they are heading in another direction (Checkpoint Security Systems acquisition). He likes the business they were in. Waiting for a pullback and will consider it.

(Market Call Minute) He still loves the stock.

(A Top Pick Sept 1/15. Up 30.98%.) A global company that is making acquisitions to fit into their portfolio, and then they get synergies.

(Top Pick Sep 2/15, Up 28.38%) They continue to make acquisitions in high growth businesses as their existing ones mature.

They find it expensive. It is a quality company and has grown nicely by acquisition. They are not sure what opportunities are left. They prefer TCL.B-T, WPK-T and ITP-T.

(Market Call Minute.) He would be a seller because of valuations.

Closed the Checkpoint acquisition and recently acquired a German company. They have done exceedingly well internationally. It is in an area where you can’t see anything but long-term growth. However, the multiple has gotten a little high. Has had quite a run, so thinks the stock will take a bit of a rest and go sideways for a while.