Firstservice Corp (FSV.TO)

A real estate management company. They manage condos in Toronto, but their big business is in the US with a lot of gated communities. Expects a lot of growth of 15%-20% per year, because they can grow by good organic growth and acquisition growth. They also own things like College Pro Painters and California Closets which fits into their gated community holdings. Not cheap, trading at around 24X earnings, but there is good growth in it. Dividend yield of 1%.

An extremely well-run and well diversified business. They own businesses such as College Pro Painters and a home security business. Pretty big in property management in the US, especially the southern US.

This manages gated communities, etc. A very unique business. 90% of revenue comes from the US. The business is very fragmented in the US, and they can grow by acquisition as well as organically. Because these are gated communities, they have long-term contracts. They also own other businesses that tie into the communities. Feels it can easily grow between 10% and 15% over the next little while. Good management. Dividend yield of 1.09%.

A great little Canadian company with most of their business in the US. They look after gated communities. Not cheap, trading at about 23X earnings. Dividend yield of 1.23% which they plan on increasing. They have very strong market share. Their contracts are longer-term. They are doing small acquisitions all the time in different areas of the US. Good organic and acquisition growth.

(Market Call Minute.) Has never been able to get his head around the accounting, but every year the stock goes up. It screams in the database that this is a high ROE stock, but there is a lot of accounting stuff in their statements that he doesn’t understand. Probably a Buy.

A property management company. Very different from others in that most of their business is in the US and most of that is in gated communities, which is a fragmented business in the US and this is one of the biggest players. There is good opportunity for organic growth as well as acquisition growth. They have signed long-term contracts. Also, own many other prominent companies like College Pro Painters, California Closets and an air conditioning company. Trading at 22-23 times earnings. Yield of 1.13%.

A property management company. They are in the US. It is a very fragmented industry. There will be organic growth as well as growth by acquisition. Most of the contracts are long term.

A property management and service company. 92% of their revenue comes from the US. Trading at about 22X earnings. He likes it because there is good organic growth. A very fragmented industry. They are the largest and only have 5% of the total pie, so they can do a lot of growth by acquisition over the next several years. Also have some other services that can grow. When you have a property management deal, a lot of that is recurring revenue, and they are in long-term contracts. Dividend yield of 1.17%.

(A Top Pick July 29/14. Up 45.59%.) They wanted to separate their real estate division from the residential services division, so decided that as 2 separate companies they might get a better valuation from investors, particularly US investors who really like to focus on certain segments of real estate. This continues to hit new highs.

(Market Call Minute.) He wants to see a couple of quarters with the spun out businesses.