Cargojet Inc (CJT.TO)

(A Top Pick June 11/2018, Up 5%) Still loves it, worth buying at these levels. Fabulous business. Extremely well managed. Have the biggest clients.

They have exclusive contracts, with their biggest customer being Canada Post, so what happens if they go elsewhere? Concentrated partner risk. They have a moat to some degree because foreign shippers can't move product within Canada. This stock has done remarkably well, though it's too small for him.

They have a dominant share in air cargo in Canada. They're growing and have used their fleet very well. The stock has been on a long run. They keep increasing dividends. There's nothing to dislike here. (Analysts' price target: $73.17)

This company benefits from online purchasing. It’s in a unique space, with contracts in place with large shipping companies. They have some exposure to rising fuel prices but will probably be able to pass on the price increases. The valuation is high but one could consider buying it.

This has one of the best charts that he’s seen in a long time. He believes that companies that hit new 52-week highs keep hitting new ones. The valuation is not a bargain, but people will buy expensive stocks if they like the story. He doesn’t own it but wishes he did. He wouldn’t buy it now because he feels like he missed the right time to buy when he sees a chart like this. Buying now might be a good idea, but he can’t bring himself to do it.

He feels it is a good little company and it holds a small position in one of their funds. They transport cargo overnight in niche markets. They won some key long term contracts and have added to their fleet. It is not a cheap stock. Yield 1.3%.

Was a holding of his funds. A dominant place in Canada. Valuation is reasonable. One of the big beneficiaries of e-commerce.

This was a lagging stock and is now showing life. There was so much money going into the FAANGs but there appears to be a rotation out of them. The transports are benefitting generally and Cargojet is doing particularly well.

Sell or Hold? This continues to execute well. We are all shopping more online creating delivery of packages. With the way airline regulations work, it doesn't look like there is going to be any significant competition. He would continue to Hold as the company just continues to execute.

This has a very strong position on the overnight market, and they are expanding that. They are going through a capital spending period, so you really have to look at their cash flow profile on what they call a maintenance basis, not what they are spending on growth. They are close to an 8% free cash flow yield, which for that type of the business is pretty attractive. There are some very strong online tailwinds going on for them.

This does air shipping in Canada for Amazon. A neat little Canadian monopoly on shipping. However, it is expensive, so he is not interested.

This is driven by the economy, sales and web transactions. Has some very, very good monopolistic situations in Canada with a couple of very, very large customers, including Canada Post. It probably has some potential to go from here and will have a good 2018. With giant contracts, a lot of investors come on board in anticipation of those contracts. As they start hitting the revenue growth and earnings growth, some investors may start exiting, so doesn't think you are going to see as great a run over the next 2 years, as there has been in the past 3, but it will have a decent year. A nice solid company.

He really likes the transport sector as a whole. This company is a great business moving cargo for Air Canada (AC-T). Technically, the stock just recently broke out after having consolidated back to October 2015.

A really good business. They are an effective monopoly on the overnight time sensitive cargo market in Canada. They have about 90%-95% market share. Have 2 customers that represents 60% of the market locked up under long-term contracts until 2025. Dividend yield of 1.4%. (Analysts’ price target is $60.)

(A Top Pick March 8/17. Up 16%.) A pretty good space. It’s the equivalent of a taxi service for airline services. There is not a lot of competition. Trading in a channel, so you should try to buy at the bottom of the channel. He uses RSI (relative strength index) for that.