Stockchase Opinions

Alex Ruus Finning Int FTT-T PARTIAL BUY May 28, 2024

Well-run with operations in western Canada, Chile and UK. CAT is looking expensive, so you consider this. FTT is safe.

$43.120

Stock price when the opinion was issued

wholesale distributors
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DON'T BUY

She'd rather own CAT, which she's been looking at. Go to the company that makes the machinery, rather than to the distributor.

PAST TOP PICK
(A Top Pick Apr 12/24, Down 5%)

Phase three of market cycle is good for this business. Staple of economy. Expecting more lift in the stock, but trend remains up and to the right. Will continue to own. 

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TOP PICK
Stockchase Research Editor: Michael O'Reilly

We reiterate FTT, the largest dealer of Caterpillar heavy equipment in the world, as a TOP PICK.  They announced $700 million of new orders in April, with orders from Chile, Canada, the UK and Ireland.   It trades at 12x earnings, under 2.5x book and supports a 20% ROE.  We like that cash reserves are growing, while debt is retired and shares bought back.  The dividend is backed by a payout ratio under 30% of cash flow.   We continue to recommend a stop at $34, looking to achieve $48 -- upside potential of 20%.  Yield 2.4%   

(Analysts’ price target is $48.38)
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

We reiterate FTT as a TOP PICK following recently reported record high free quarterly cash flow of $330 million.  Management commented that order backlogs are growing, while velocity of deliveries is growing.  It trades at 11x earnings, 2.1x book and supports a ROE of 20%.  We like that cash reserves are growing while debt is retired and shares bought back.  We continue to recommend a stop at $34, looking to achieve $49 -- upside potential of 19%.  Yield 2.6%

(Analysts’ price target is $49.33)
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Sep 19/24, Up 9.1%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with FTT is progressing well.  To remain disciplined, we recommend trailing up the stop (from $34) to $38 at this time.  

BUY ON WEAKNESS

Excellent business that deals with Catipillar equipment. Very strong management team. Would recommend holding shares. Cyclical business that is a proxy to economy. Would recommend buying below $30/share/ 

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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Sep 19/24, Down 1.6%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with FTT has triggered its stop at $38.  To remain disciplined, we recommend covering the position at this time. 

DON'T BUY

Because it's more focused on resources in Western Canada, has had a tougher time. Especially with the decline in mining, and oil & gas being very cyclical.

HOLD
For long-term growth.

Q3 miss due to softness in Western Canada. Capital discipline. Copper activity has been pretty solid, but Trump means there's not going to be as much thirst to go green. Pricing power, but that's over for now. Doesn't see a lot of growth over next couple of years.

Good over the long term. If it's in your non-registered account, don't sell. Easier ways to make $$ over the next 12 months.

DON'T BUY

Repeatedly compares this to TIH, and TIH always comes out on top in terms of ROIC and dividend growth.