Element Fleet Management (EFN.TO)

Recently sold it because of the ranking in his model. Another growth by acquisition story.

A core name for him. Have a very interesting business model that is on track and will allow them to continue to grow versus some of the other financials that are struggling to grow. Stock is taking a bit of a pause while people are waiting for the next deal, based on his research and view of the market and the deals that are coming. Very, very strong balance sheet.

You are going to see volatility because it is a new company and they are breaking ground. It is a question of where they grow. There is no reason to sell it though.

Very, very solid non-bank financial. Doesn’t own any of the banks, but owns this and Alaris Royalty (AD-T) in a big way. They are unique companies, really well managed that have leading market positions in their niches. This company is making tuck in acquisitions that they are able to enhance value on. (See Top Picks.)

Chart shows a consolidation period in 2012 followed by a breakout and the trend is still higher. Just don’t let it take out the low of around $12.00. Making new highs.

Leasing. Did a helicopter acquisition from General Electric (GE-N) and railcars from Trinity (TRN-N). Both of these things add to their earnings forecasts. He likes this. Has a one-year target of $18.

Have re-created this company which he thinks is better. They have 4 key industrial areas they are growing in. They are underlevered right now. Basically in the leasing business and have very tight controls on the leasing. Have some decent growth built-in over the next couple of years as they expand within their areas. Not cheap on this year’s earnings, but is expecting them to deliver the growth, which will be levered down to the bottom line.

Equipment leasing. An interesting company. Not all that familiar with it but the guys in his office love this. Chart shows a little dip. If we like companies, now is the time to be picking up these things.

Fastest growing equipment leasing company in Canada. Earnings of 11 cents last year up to 34 cents this year and next year will be 64 cents. Just got into a big deal with a rail car manufacturer.

It’s too expensive for him. Great management team but there are a lot of earnings that have to be backfilled. They are becoming a serial equity issuer. Thinks research on this company is somewhat biased.

Expecting 40% jump in earnings next year. They are a leasing company. They will lease expensive assets back to companies. Buy for the growth.

The strong upward trend line has been broken and is now going through a point of consolidation. If the consolidation breaks out to the upside and gets back ahead of the trend line, he would be okay with this. If you own the stock, there are better, more emerging stories that are looking a little healthier.

Leasing company, rail cars, equipment. Growth by acquisition story. Trades at high multiples. She has been watching it but has not bought yet. Her decision is based on how the management team can find new acquisitions that will be accretive.

Looks like a great growth story in the leasing business. It is clearly a reincarnation of Newcourt Credit in that it had a great growth for a number of years, which ended badly. They are raising capital and are aware of what went wrong in the past. Have a lot of followers on the street right now. It needs capital to sustain its growth so you’ll see stock issues on this.

(Market Call Minute.) Great company but is very expensive. Fully valued.