DH Corporation (DH.TO)

BUY
Has exclusive relationships with Canadian banks. Good business, but the cheque business tends to decline at about 3% or 4% a year, but because they are basically a monopoly they can increase prices.
TOP PICK
A very high quality trust. Have long term contracts and relationships with all 6 of the major banks. Very stable business. Have combatted the decline in cheque usage by decreasing the size of the bundles clients order and adding additional features. Conservative payout ratio. A great Buy under $21.
TOP PICK
A core holding. Was a little bit light on their Q1 results because of a decrease in revenues which he thinks is temporary. A very healthy payout ratio. Expects a distribution increase this year.
BUY
A core holding. Strong management. Slow but moderated growth. Facing challenges in cheque usage which they are addressing.
WEAK BUY
They have been doing some profit taking. Had a spectacular run. Increased their distribution 4 times. Pays $1.44 (about 6%.) Has a monopoly in cheque printing.
BUY
Favourites of his in the fund include Davis & Henderson, Yellow Pages, Fording Coal.
WEAK BUY
Doesn't have enough growth to interest him. There could be trading rallies in the stock. 2 years from now, will probably trade in the range of $14/16.50.
DON'T BUY
Has a very high level of goodwill built into the price.
SELL
Overpriced at the current level. Feels it is better valued at $13/$14 range.
BUY
There is a movement away from paper checks to electronic money transfers, but their profitability remains strong. Essentially a monopoly.
BUY
Just announced another distribution increase. Decent balance sheet.
DON'T BUY
A good core holding. Fully valued. Buy under $12/12.50.
PAST TOP PICK
(Was a top pick on July 12. Up 8.4%.) Still likes.
DON'T BUY
A good trust, but a little high now. Needs to get some acquisitions or expand into the US to continue to go up in price.
TOP PICK
Market dominant. Limited competition. Good management.
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