Dorel Industries (DII.B.TO)

They make bikes, baby furniture, baby equipment, car seats, etc. The family that is involved in it owns a significant stake. He sees better days ahead. It is trading at a reasonable valuation. Dividend yield of about 4%.

Their big focus now is on bicycles. They are making an acquisition in Brazil to even out the seasonality. He likes it and bought it last year, likes the fundamentals and is willing to wait for it. 3-4% dividend yield.

This is a Dual Class share structure, and he warns people to be careful of that. Not one he is interested in.

Used to make all its monies through infant car seats and “put it together yourself” furniture. It has now become a big force in the bicycle market. Last year the stock got slammed because of very cold, wet spring weather, and didn’t sell as many bicycles as expected. This year things are going better. He is quite bullish on the stock.

Consumer discretionary normally underperforms the market at this time of year. Technically the chart shows it is on a downward trend. Performance relative to the TSE is negative. Also, trading below its 20 day moving average. It is coming down close to its longer-term support, and if it bounces from that level, it will be an opportunity to take another look. Seasonally these stocks do very well from October to at least the end of the year.

Didn’t have a great year. A lot of sales come out of the US and Europe. Times are still tough in Europe. Their recreation and leisure side, which has been doing quite well, suffered from a very wet spring. Re 2014, things continue to improve in Europe. Developed new products that are being well received, If there is normalization in the weather, bicycle sales should have much better year. Also, expanded into Brazil which offsets some of the seasonality. Dividend yield of 3.29%.