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

A great company. He sold it last year because it was getting a little expensive. There is reasonable organic growth but it is mostly acquisition growth. There are more acquisitions to be done in that space yet.

Currently it’s range bound and consolidating. In the summer and fall months, there were issues with costs of materials due to hurricanes. They are dependent on some chemical plants and resins in the Midwest US. In addition, they do like a weaker Cdn$ versus a stronger one. He is continuing to buy this and is very comfortable with it.

This is a core holding of his. Fundamentally they are doing very well. They have reasonable organic growth combined with strategic acquisitions. Don’t worry too much about the price movement here. He actually added the last time the stock tanked.

This peaked back in June, and hasn’t regained. It’s been pretty choppy. However, chart shows a nice upward trend. If it broke below that on a longer-term basis, at around $53.50, he would say there is something else there. Indicators are a little weak. The general overall trend is nice and up.

It stumbled a bit in the last 6 months since their last acquisition. They have a tremendous track record with acquisitions and adding to cash flow. He does not see much multiple expansion in their future.

He really likes this. There are some resin issues, and margins are getting eroded a bit. They’ll be able to pass those costs on, in about 6 months. This may not do a whole lot over the next 2 quarters. Over the long-term, it has done very well for shareholders. Acquired a money printing company, so in each country, they only have one customer, the central bank. A very chunky business, and the quarter over quarter comparables are going to get a little messier than in the past. You are going to have to look at it as an ex-money printing business, as one day they may get a random order from a central bank, and it may not happen again until 2 years later.

Focused heavily on adhesive labels for consumer products, and did very, very well. They consolidated the industry. They may have consolidated to the point where opportunities are slower and are having to look in other areas. Very expensive because of the quality of its history. Had a bad quarter, and if they are back on track, the stock will resume growth. Wait a little to make sure they are back on track. You could look at Intertape Polymer (ITP-T) or something similar.

Probably one of the very few success stories in Canada, as far as making acquisitions, having synergies from those acquisitions, and then rinse and repeat. From a long-term perspective, management has done a fantastic job, and the stock goes higher over time. In the shorter term, they’re going to be no different than any other company. They are going to sort of bump around with their quarterly earnings. In the most recent earnings, they were lower than the street had anticipated, so the stock sold off. It is probably getting into a fairly good range now. If you don't own the stock, consider buying a half position now and then watch to add the other half if it pulls back.

This has been such a phenomenal stock, and they’ve made really meaningful acquisitions in the last couple of years propelling their earnings much higher. She is not sure we are not getting to the point where growth might be slowing down. It is one of those sectors that is kind of out of favour. Everybody wants to be buying cyclicals. She’s a little apprehensive that if numbers are not fantastic and in line with what people are expecting, the stock may suffer.

Specializes in labels and have been acquiring mom-and-pop operators. A very successful business model of acquisitions. Because it was getting a little pricey, he recently sold his holdings. If you own, take your profit and run.

They make acquisitions, pulling costs out of the business. They keep repeating. They have organic growth. The stock has been consolidating recently. Executives have a decent amount of stock. It looks like it is about to reaccelerate.

This grows by acquisitions as well as some organic growth. A relatively well managed company. A lot of their earnings come from outside of Canada. This is one she watches, but it always trades at a premium. Would take a closer look if there was a pullback in the stock.

This has been a fantastic stock over the last 5 years. Has a $10 or $12 billion market cap, so is not a name that is within his sweet spot.

Packaging and labels. This has done well over the past year. One of the issues with industrials, especially manufacturing stocks, is what stage are we at in the cycle and what price are you paying. He would treat this was a little caution until you see what happens with growth in the US and Canada over the next few months.

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.