Intertape Polymer Group (ITP.TO)

A great business with a great dividend. They are a bit of a price taker with 3M, which is his only knock against the company. However, they are offsetting that with a lot of operational improvements and some of the new plants they are putting into operation. They’ve made a few acquisitions including a recent one in India.

Makes all kinds of different tapes for packaging, but also has leverage to e-commerce with the growth in shipping. Has a lot of business in the US, and have been building new plants to lower costs and improve efficiencies. Their transition has not been smooth, having been hit by a flood and just coming out of it. When they get the plant running well, they are going to have a cost advantage and a lot more capacity. Dividend yield of 3.06%. (Analysts’ price target is $27.25.)

They have done a great job under the new management team that came in in 2011. He is intrigued by the turnaround in the business, but is concerned that they are a number 2 player in a market dominated by MMM-N. It is liable to be crushed. It is also very cyclical and although the environment in the US is good right now, their margins would suffer in a downturn. The risk/reward is just not there for him.

(Market Call Minute.) One of the smartest management teams in Canada. Terrific capital allocators. Got hurt by problems they could not foresee, but this is an interesting opportunity here.

Manufactures tape, plastics and packaging materials. About 90% of sales are in the US and Canada, but they’ve done a recent acquisition to get themselves into India, and are starting to expand more into Asian markets. They are projecting growth to go from about $780 million to $1.5 billion in the next 7 years. Dividend yield of 3.19%.

Just made a new high which is really positive. It has support at around $22.50. A long-term chart shows an upward movement from 2014. You could probably buy this pretty safely right now.

Manufactures tape, some for packing, some for student, some for industrial applications. What they have been doing in the last few years is trying to lower costs by building new plants and closing down old ones. The lower natural gas prices didn’t hurt them either. They have an under levered balance sheet which they are using to their advantage by either increasing payout or acquiring things. Recently acquired a small company in India. Dividend yield of 3.24%.

(Market Call Minute.) One of his larger holdings. Great valuation. Good price momentum. Great ROE’s. Reasonable valuation overall.

There has been a major turnaround in this story. It was a company that was not well-managed and had a huge debt load. They have turned things around, doing it by one division, one plant at a time. Thinks they are going to capitalize by being in the right place at the right time. The majority of what they do is tapes. As more and more people go online, things are being shipped out in boxes that are going to have to be taped. They’ve a 5-year plan of doubling revenue, based all on organic growth. Dividend yield of 3.29%.

(Market Call Minute.) A very, very interesting name. A great growth story. They do tape which is a very stable business. Have a lot of cash to be able to go out and do things. Clean balance sheet.

(Market Call Minute.) He likes this company. They are making all kinds of good products, and doing better than the economy would suggest.

Manufactures tape and are head-to-head against the Goliath 3M (MMM-N). Have had periods of success and other times have had a really rough ride. A good company and they do a good job. Very much a commoditized business, and they try to add value through specialty tapes. Wouldn’t be his favourite sector.

(Market Call Minute) It is being run much better now. You have a steady upward move. One of the top three industrial tapes.

It is a good multiyear theme. Packaging and tape. It is an interesting way to play online sales increases.

This is pretty much up to all-time highs again. A really solid ROE at 26%. PE is around 15X. Pristine balance sheet. 3.5% dividend yield.