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

A core holding for longer than he has been at his firm. Simple business where they produce pressure treated labels. They follow customers around the world and are one of the most successful companies in the space. They regularly increase the dividend.

Very well-managed company. Likes their exposure to the US$. Very well-managed. Diversified with their Avery Dennison purchase. Their competitor Ball Corp (BLL-N) recently made a major acquisition of a UK company, and there is some thought that they may have to divest some of those properties, perhaps at distressed prices. Conservatively financed, so they have lots of capacity to make an acquisition.

Packaging stocks would normally do well in this economy. There have been so few opportunities in Canada with the commodities the way they are, and so money moved to the non-resource areas. It will turn down when the market turns down.

Core holding. A Huge winner. They have done a great job growing by acquisition and have also grown organically. Wait for weakness to buy. They are becoming more and more entrenched with their clients.

Material stocks (packaging) tend to do well from October all the way through to May. This one has done quite well. From a seasonal perspective, you want to look to rotate out of this. Look for more defensive areas in the market. This has done quite well, so take your profits.

This is in the packaging business, which is a great business to be in. If you think the economy is going to continue to grow and more stuff is going to be shipped with Internet shopping, packaging is a good business to be in. (See Top Picks.)

A Canadian based multinational consumer company. Their products are packaging. A world leader in labels, especially pressure sensitive ones. Also, make aluminum cans and plastic laminate tubes that are going into cosmetics, etc. A couple of years ago they made a transformative acquisition from Avery. They bought their label business as well as their digital printing business. That has been a huge win for them. Dividend yield of 1%.

A solid, well-run company. An international company making packaging containers for things like Johnson & Johnson and a lot of consumer product companies. They get a big benefit from the US$. They know how to run a business. Cash flow is solid. Did a big dividend boost last quarter.

(Top Pick Mar. 21/14, Up 48.83%) Canadian multinational. Bought part of Avery last year and it turned out to be great. 95% of revenue is non-Canadian. As customers around the world expand, they go with them. Low multiple and the dividend grows a lot.

A lot of their business is outside of Canada, so they benefit from the weaker Cdn$. Have been making acquisitions, mostly in labels, and expects this will continue. They have packaging as well. Yield of 1.1%.

Very underappreciated. Earnings were in line. Pays a decent yield of about 1%, but they grow the dividend. This is in a business that continues to make acquisitions in the US.

Label and packaging. (Resin type labels benefit from lower oil prices.) Also, aerosol and aluminum type packaging. 80% of revenues come from offshore. Stock has done extremely well. Trading at about 17-18 times earnings, so it’s not cheap, but very, very well-managed. Well positioned to take advantage of the falling Cdn$. Yield of 0.90%.

Labels and packaging. Valuation on this is too expensive. He likes this type of business but prefers Neenah Paper (NP-N) and Intertape Polymer Group (ITP-T).

One of those amazing 30 or 40 companies that everybody should hold. He doesn’t know where this one is going, except that it seems to be a non-fail company.

(A Top Pick Nov 26/13. Up 36.9%.) Labels. Growth will be about 3%. Considers this as an anchor position in his portfolios. This gives a lot of kickers, in that they can make acquisitions. Generates a lot of cash. Every acquisition they have made has been hugely accretive.