Cargojet Inc (CJT.TO)

He likes the business and its dominant market position. He hasn't owned it because of its premium valuation. His favourite in the sector is TIF International (TFII-T), a trucking business which gives much higher returns and may be broken into two parts.

Still has a monopoly for overnight delivery. Bloom's off the rose as growth has slowed tremendously. Cancelled plane orders. Fairly valued now, range bound. Doesn't see catalysts for a return to former highs. Off lows, stabilized.

He feels pretty positive about the stock - it has had a nice bounce but is still cheap. E-commerce is still growing in Canada and Cargojet does all the overnight shipping. He expects higher free cash flow and lower debt.

It has good forward guidance with 25% earnings growth predicted. It is technically a little overbought so it may pull back $10 to $15.

Would not invest in company right now. Good company, but very capital intensive & if there is economic slowdown - will not be good for business. Does not own shares. Better options for investors in the markets. 

Come off since Covid, but has now had a nice pop. Founder is well respected. Relies on freight and deliveries. In a potentially slowing economy, less volume demand. A recession would definitely impact it, similar to a FDX.

Chart indicating strength. Nice break in down trend. Good business to hold. Would advise picking a stock price target to sell or buy. 

CargoJet boasts a cheaper valuation and has a decent growth profile. Shares have plunged a lot this year.

There is little or no risk with solid long-term contracts with large companies like Amazon. It is managing costs well but volumes are weaker. It has good management along with good margins. It trades at 7X EBITDA which is the best price in a long time. He sold it as a tax loss but plans to buy back later in the year.

He likes it and there is an opportunity to start buying it with the pullback. A sustained high energy valuation could be a headwind.

He turns-over stocks 3-6 months. CJT has been in a downtrend since its 2021 peak and doesn't see a change in that. He's waiting for a base, and a base is the time to buy.

Out of favour right now, lumped in with slowing e-commerce. Monopoly for overnight air cargo delivery. Long-term contracts, and they get paid even if volumes are low. Very good EBITDA margins. At some point it will stabilize, better days ahead. Good time to start buying.

Fundamentals strong on business despite weak share price.
Good time to invest given low price.
Would be a buy and hold type of investment.
Expecting share price increases going forward.
$100-$110 price target. 

Valuation low due to recession fears.
Good time to buy.
Company executing well.
Strong management.

Terrific company. Will be around for the long haul, and will find a profitable niche. Hard to know how competitive the space will get. When passenger flights aren't full, they pick up cargo capacity, which steals CJT's lunch. He's waiting for an entry point to re-enter.