EnerCare Inc (ECI.TO)

He likes this company. They were a few disappointments in the last quarter. Also, the mix of their rental product affected margins to some extent, but that is more of a transitory thing. It pays close to a 5% yield, which he thinks is pretty secure. As they get more and more into home services, that will help to improve margins, but also cash flow. If your horizon is over the next few years, this is a pretty good stock to own.

A solid company. The last quarter was weaker than expected, so the stock had a hiccup downturn. They’ve done some very good acquisitions to ramp up their services to the home. Very buyable now and you can park it for 5-10 years and be quite happy. Dividend yield of 5%.

Provides services such as water heaters, air conditioning, repair and maintenance, furnace installation, protection plan, etc. They acquired a US business in the same area. A good company. Thinks the debt is a little high. The stock has come down, so it is becoming more interesting. A good solid dividend. A very stable business.

A water heater rental business, which is pretty stable. The company has grown through acquisition. If they can continue to make acquisitions and continue to pay a dividend, this should do well over the long-term.

A fairly conservative company. Water heaters and HVAC’s. A slower growth company, but good earnings growth. A good, solid business. They are expanding in the US. Dividend yield of 5.1% will be going up 5% or so a year. (Analysts’ price target is $24.25.)

A pretty good company, but looks a little expensive. Return on Capital is coming in at around 11% which is pretty good. It has been ramping up and getting better, which he likes. Q1 data looked fine.

Reported earnings about a week ago, which were a bit soft. Doesn’t think it was anything to be concerned about. It has quite an attractive yield. This is on her watch list.

(A Top Pick March 15/16. Up 27%.) Reported last week and numbers were a little weak so the stock dropped, but thinks the market is misunderstanding. This is a buying opportunity. He still likes this. A utility type business, but are making US acquisitions. Dividend yield of 5.3%.

Good solid company. They made a big acquisition to enter the US market last year. Now is probably a good time to be buying the stock as it has had a pullback off its recent high.

He really likes this. It used to trade at a significant discount to the utility sector, but it should have traded at a premium because of its better growth profile. He likes their US acquisition which was more on the HVAC business, so it is more on the service side, other than the traditional water heater business they’ve been in. They also have a sub metering business, which doesn’t get a lot of attention. Sub metering helps when you have multiple units such as condominiums or apartments. This has a nice growth profile, and has a decent yield to it.

He likes this. Basically leasing HVAC systems for homes. It has done phenomenally well. It sounds like the service expert side of their business is really starting to see some acceleration. He expects to see earnings continue to ramp up.

This has everything going for it, except valuation. They beat Q4, due to strength in their service experts and their home services segment. Increased their dividend by 4%. Trading a little higher than its 3-year average, and he prefers buying names that are a little lower or where there is a catalyst. He sees 9% EBITDA growth over the next couple of years. Wait for a pullback before buying.

A business that was going nowhere and now is going somewhere. It is all about focusing on your balance sheet and generating free cash flow. Investors need to be patient. It is a well run business and there is lots more room for them to get growth.

A name he really likes. This has a 9.1% EBITDA for 2017. Yield is about 5%. They made an acquisition last year on the HVAC servicing side. It was fortunate that the summer was so hot last year. There are still potentially some costs synergies to take out of that. The part he really likes is their sub metering business, a growth business that is not getting any credit from the street.

He likes this for the long-term. This services, sells and rents water heaters, furnaces and air conditioners. Increased penetration of rentals is really valuable for them longer-term. Good management team. Just did a big acquisition in the US where they are going to roll out rentals, which should be good for the company longer-term. Dividend yield of 4.86%. (Analysts’ price target is $21.60.)