Intertape Polymer Group (ITP.TO)

(A Top Pick March 20/17, Down 3%) Some plants were flooded. They were also hit by industry-wide input costs. They continue to make accretive acquisitions. He sees upside and still has faith in it. Safe dividend of 3.5% and will even grow.

(A Top Pick April 17/17 - Down 12.5%.) He thought it was a no-brainer idea. The company benefits from e-commerce. They make the water activated tape and things that boxes use. Biggest customer is Amazon. They made a number of acquisitions recently and some are not working as they should. Maybe the market is punishing them for that. He thinks longer term is going to do OK. Valuation is reasonable.

A great little company that basically operates in an oligopoly with 3M's Scotch tape. With the move of Amazon and all the shipping, the amount of tape being sold is increasing. Instead of shipping in containers, stores are now shipping in small packages. A fine little growth company and has good management.

He has been looking at it carefully and almost pulling the trigger. Management has been making some good moves. They are launching new facilities and profits have to kick in. It is probably not a bad price right now. The last results were pretty good. They are a well managed company and the dividend is safe.

He really likes management. The dividend is safe. This business grows at about GDP. If they are able to create low cost capacity, they may be able to increase their market share slightly, but the free cash flow yield on this is relatively high. To him, the right price is below $20.

It is a well run company. They had a hiccup with one of their plants. At some point the dividend will go up. He likes the management team.

A very established company. It’s been around forever. Bought it years ago at about $3-$4, and ran it up to about $20. He likes management. Has zero interest in it now. Almost everything he buys is under $10.

In packaging goods, and they have competition. It came down in the 2^nd quarter over the summer, when there really wasn’t much volume, so earnings were not great. He’s been buying shares over the last couple of months. It’s a growing company that is going through some growing pains, to get to the next level.

(A Top Pick Oct 26/16. Down 9.85%.) Hadn’t had great earnings and it was a light volume market, so the sellers piled on. It seems to have solidified at $18 and grinding its way higher. This is something you can buy and hold and there should be some pretty decent growth.

He wouldn’t be a buyer. The closing price was $18.89, and he has a model price of $22.78, only a 20% upside. It is trading at EBV 5, a very expensive valuation. There was a negative transit back in August, and it is really struggling under that. He senses that there is a little bad news happening in the future.

Trading at $25 a few months ago and dropped down to the $19 range. He is hoping it can go back up to $25 and much higher. They warned last quarter that this was going to be a tougher year. Juggling a lot of projects and a lot of them are not delivering cash flows. They buy a lot of plastic and chemicals, and with the hurricanes in Texas and Florida, it has pushed up some input prices. They won’t be able to pass that off to customers in the short term. Expects an ugly Q3, but hopefully there will be some good communication and messaging that things are improving. For long-term investors, this is a good opportunity.

Makes tapes and fabrics, and was hit by rising prices for polypropylene. The stock took an enormous dip, and this is a tremendous entry point. It is a temporary problem.

Technically, this is not showing too much hope. Chart shows it has completed a double top pattern, and has broken down and is in a downward trend. Also, its momentum is negative. Using technical analysis, your downside risk is probably fairly minimal at these levels. At the same time, technicals do not favour an upside move in the short term.

Chart shows an old wall of resistance at around $20, which became support. It now looks to be breaking that support level, which is a bit of a bearish position. They will probably get back into the $15 range, especially if the markets get a bit soft. If he owned it, he might be tempted to Sell.

This has been the turnaround story. They had a kind of poorish quarter recently resulting in a pretty good pullback in the price, which is not justified, as they are still guiding for good earnings growth in 2017, and more in 2018. No one likes to see companies give guidance and then pull it back. It’s in the penalty box, but you are getting a great yield. Smart management.