Exchange Income (EIF.TO)

Has been invested in this for some time now. Management is excellent. They have a business where they acquire a bunch of other operating businesses. They’ve really focused on airlines and manufacturing. In their history, they did the West Tower transaction and things were growing great, but then ran into a lot of problems. The company successfully sold that and redeployed the capital, which is a hallmark of a good management team. The stock isn’t cheap, but has a good dividend. They tend to be serial issuers, and as they add acquisitions, they issue more stock. If you don’t own, he would wait to pick up a new issue at a cheaper price. 5.1% dividend yield.

A growth by acquisition company, engaged in aviation manufacturing. They have some scheduled chartered airline services. The company has done extremely well. Ranks 63 in his database, roughly the top 10%. Earnings are expected to grow modestly by about 5%. A PE of 17X. ROE is reasonable at 14%. Unfortunately, free cash flow currently is -5%. This doesn’t seem cheap. Prefers others.

Manufactures airplane parts. He likes this. A surprisingly good business. They consistently produce 13%-50% ROC, year in and year out. Pays a nice dividend of just under 5%. Valuation is still reasonable. The balance sheet looks great. Not a lot of debt.

This has been a very, very strong stock for the past couple of months. Their last quarter, which is typically their weakest quarter, had absolute stunning blow away numbers. Raised their dividend by about 5%, and the payout ratio went down dramatically in the quarter. Their divisions are firing on all cylinders. Very heavily tied to aviation and aeronautics, and he would like to see them do another deal to dilute that exposure a bit. A very cheap stock with a very nice dividend yield of 5.6%.

This invests in aerospace businesses and manufacturing. The stock has had a good run over the last year of 50% or so. Any time you get a stock with that much appreciation, people sometimes get nervous and the stock will come down a little. A very well-run company.

(A Top Pick Nov 13/15. Up 40%.) Sold his holdings when he thought there were better opportunities elsewhere.

Aviation related services. Had shorted this in the past, but has been watching from the sidelines since. They have been getting some headwinds, largely from cheap jet fuel prices.

(Market Call Minute.) This has done all the right things and pays a good dividend. It has a lot more upside. They are finding deals harder to come by. Growth by acquisition, but they are showing discipline.

They put a lot of good capital to work. Return on Capital has climbed to 13% consistently. Valuation looks reasonable.

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.