Cargojet Inc (CJT.TO)

This has had a good run. On the current valuation, he is more comfortable with Chorus Aviation (CHR-T). This is an interesting company and they seem to be well-managed.

He really likes the company, but not the valuation. They are by far the biggest player in terms of coast to coast transportation. They have done a phenomenal job of integrating the big contracts they got last year. They had to take on a fair amount of debt. So far so good. They are delivering the goods. They are not a cheap stock right now.

Sold his holdings earlier this year. The story has now played itself out, and he would love to buy this on weakness. Trading liquidity can be fairly thin.

(A Top Pick Sept 3/15. Up 82.42%.) Sold his holdings a few months ago, but it had been a profitable position. Reported earnings recently that were quite strong. They are benefiting from the idea of more online shopping with packages needing to be delivered quickly.

(A Top Pick June 12/15. Up 26.22%.) Exited his position 3 or 4 months ago. A well-run business and the leader in air cargo in Canada. They are benefiting from the online shopping trend. What worried him was the economic sensitivity of the business.

(A Top Pick June 29/15. Up 4.95%.) There aren’t too many players in Canada, so this company won a big contract from Canada Post. They’re also winning some contracts from Air Canada and are a big player for UPS. A well-run company and there aren’t too many options in Canada.

Acquired Canada Post nighttime freighting. Also, moves freight for UPS and other giants. Have made big expenditures on new planes, and there is more to come.

(A Top Pick Oct 2/14. Up 9.68%.) Great dividend grower. Free cash flow yield should approximate 10%, which is really tough to find in this market. Stock has pulled back for no apparent reason and he would use this as an entry point. His target on this is in the high $20. Dividend yield of 2.5%.

Has his eye on this. Stock has done very well over the last few years. Ranks fairly well in his process. They secured the contracts for Purolator and Canada Post. Management has done an excellent job of building, and he thinks they are going to continue to do that. The one caveat is that it is a fairly competitive industry, and fuel costs can be something that really eats into profitability. Right now they have a tailwind with fuel prices, but if jet fuel prices start to climb, that would be something you want to be cautious of. Right now it is a good investment.

They are dominant in their industry with about 90% market share in the overnight cargo industry in Canada. They are a real beneficiary of e-commerce as more and more people ordered things online. Have long-term contracts with their clients with a lot of them being take-or-pay, so there is a minimum guaranteed amount of volume. Dividend yield of 2.82%.

The number one air cargo provider in Canada. They do a great job of moving packages and goods every night. Large contracts with Canada Post and UPS. Their business is more contractual rather than spot and when investors recognize this they will do well.

The dominant player in the time sensitive, overnight cargo business in Canada. Have 90%+ market share. A beneficiary of long-term secular trends in e-commerce. 25% of the company is owned by management. Very well positioned to significantly grow their EBITDA in earnings, because they got a contract with Canada Post, which doubled their volumes. Dividend yield of 2.39%.

Good operating momentum that will double within two years. Significant contract with Purolator that kicks in at the end of 2015 and is not factored in to the stock price. They are expanding their fleet. 3% dividend yield and will likely be bumped up next year.

At least 50% of all air cargo in Canada has to go on Canadian owned airlines. This one has done pretty well over the last year. FedEx, UPS and Transforce are their big clients and they are expanding into Eastern Canada. They might get the Canada Post contract, which is worth $35 million. 5% dividend yield. Fairly solid balance sheet. $12-$13 over the next year is a reasonable figure.