James Telfser
GDI Integrated Facility Services Inc.
GDI-T
TOP PICK
Aug 28, 2019
It's a small-cap, so it could pull back suddenly. It's recession-proof. They offer janitor services in schools and hospitals with long, long contracts. They are big in the U.S. They will continue to do deals, having done a dozen in the past few years. What excites him is their organic growth over 11% a few quarters ago. They're gaining market share. Maybe they'll be taken out. (Analysts’ price target is $32.33)
Has had a number of problems over the years. Has had to cut its distribution multiple times. Probably not going to go under, but won't have any good moves.
Basically an aerospace and industrial. Has had a tough time. Even with aerospace coming back it doesn't seem to be winning too many contracts. New CEO won't guarantee new contracts.
Probably never should have come out as a trust. It IPOed at $10 and hit lows in the $3 range. There is a catalyst tried to shake up management/board and trying to surface some value.
In aerospace which is a very hot area. Has done extremely well. He doesn't see how it could maintain its current valuation. Would take some profits off the table.
Has concerns about companies that produce in Canada but rely on US$ sales. This one bucks the trend a little bit in fact the bulk of their product is in the aerospace industry, which has been doing a wonderful going forward. Could see another 10%-15% upside.
Business trust. Provide equipment to the industrial and aerospace segment. Currently at a record backlog. Q1 was very good. Currently have a 70% payout ratio. Has a little concern as to how long the aerospace cycle will last.
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