Exchange Income (EIF.TO)

We had a break out from a band of Jun/Jul. We have a nice little break here. It is getting above levels that were very significant to it.

A diversified business owner of assets, aviation and manufacturing. The company has put out great numbers, and management and the team have done all the right things in terms of strategic acquisitions. He thinks their operational excellence will continue. Has a pretty good yield of around 5%. Not an expensive stock.

(Market Call Minute.) If this pulled back, he would be interested in buying it.

Has been Short on this in the past. There were concerns about their telecom servicing business in the US. They’ve since sold that business. They’ve been a beneficiary of cheaper jet fuel prices. Thinks it should trade at a more significant holding company discount.

This is a bit of a mini-conglomerate being in aerospace and other industrial divisions. He is looking at this to see if he should add to his holdings, and is waiting to see their earnings.

Has been very bearish on this in the past. He stepped aside when they sold their US telecom related business. They have been a beneficiary of running some airlines in northern Canada with the cheaper jet fuel prices. They recently made a fairly large acquisition of external monitoring of coastlines. He would not feel comfortable with this.

7% yield. 10% EPS growth per year. A sleep at night story. Aviation. Routes up north. They also are into the airplane parts business, which has good margins. Two dividend increases in the last year and half.

Likes this. He models their 2016 estimated payout ratio at 60%. Feels they can raise their dividend again. Not cheap relative to its 5 year, but he models pretty robust earnings per share growth, and 2016 could be 45% higher than last year. The caveat is that it is a fairly small stock and thinly traded. This is a good level for this name.

This company has 2 segments. Airlines/aerospace and manufacturing. Likes this and thinks management has done an excellent job. They really navigated around the West Tower acquisition and divestiture. Thinks it will continue to do what they have been doing. They buy private businesses using marker capital at higher multiples. They have synergies between their businesses.

This is a niche player, not only in automotive, but also in aviation. It is a growth by acquisition story and he sees a lot of synergies in this area. Dividend yield of 7.37% which is not only sustainable, but capable of being grown.

Growth by acquisition. He likes this and thinks it is viable. Has a nice dividend. He models 68% 2016 estimated payout ratio. Debt levels are okay. Debt to EBITDA is 2.8X. He models 18% cash flow per share growth over the next couple of years. It is still trading below its five-year average. A higher risk name. Yield of 7.8%. His target is $30.

A higher risk stock and somewhat illiquid. His company has a $28 target on it. He forecasts their 2015 payout ratio at 60%, so the dividend looks good. Trading below its five-year average EBITDA of 7%. They just de-levered their balance sheet by selling the West Tower. Bought an aerospace company which looks like it is going to be pretty accretive and a strategic fit.

They have gone debt free and basically said they will never make the mistake again of having one company too dominant in their portfolio. The dividend is massively safer than it was two weeks ago. It was getting rather risky then, but they got out of it very nicely. Hold for the income.

He has been Short this name most of this year and just covered his position in August. They are a holding company. Have 2 primary businesses, a regional airline business and maintenance and construction of cell phone towers in the US. AT&T is a customer. Just announced they are going to sell this US division.

Stock is not doing very well. This started off as a sort of conglomeration of various businesses. Started off in the airline space, basically ambulances and government contracts moving people from the north down to Winnipeg for medical care. That is a good business because the government is your customer. Then they ventured off into things such as cell phone towers, and this is what is causing a lot of concern right now. He would be very careful about this. It has a feeling that there is something wrong.