Intertape Polymer Group (ITP.TO)

This is really a turnaround story that is firing on all cylinders. Just came out with their earnings in the last few weeks and they were blowout numbers. Their big competition in North America is 3M (MMM-N). They continue to execute and have done a very good job of restructuring and streamlining the company. Thinks their business continues to go higher.

Dividend is paid in US$’s which he likes. It is largely a US company, but Canadian listed. Although it can be volatile, to him it seems very cheap. Under followed. He has been Buying on dips in the last couple of months.

Delevered their balance sheet. Volume growth is based on growth in the US. Because their balance sheet is clean, they can make an acquisition that would be accretive without leverage. You are set up for dividend growth.

Manufactures industrial tape. One of its largest customers is Amazon. Very stable and doesn’t tend to move much. They have already doubled their dividend. When they have their new plant online in Q1, things will be settled and they will be increasing their dividend again.

Would continue to hold it.

Rode the turnaround from $1.30 to $16 and sold his holdings. Stock got weak and went down to $13 or lower. They took their cash flow and increased the dividend by 50%. A conservative board and they wouldn’t have done that unless they were super confident about the future. Also, announced a share buyback of 2 million shares. This goes from being a turnaround story to a dividend story. Thinks that the last legs of the turnaround will produce enough cash to increase the dividend another 50% or more over the next couple of years. Stable, safe and well run.

Did the uptrend break last year on ITP-T? Yes, the stock did break its uptrend last year. Made a new lower high after the uptrend. Chart does not look encouraging. If you own it, you should exit at some point.

Sold his holdings that he had bought at $2.66. Management has done a great job in refocusing the company in a lot of ways. It was a tremendous success story for him. It took a number of years.

(A Top Pick Aug 7/12. Up 39.84%.) Still likes. Thinks it still has a little more oomph to it but most of the easy money has been made.

(A Top Pick Aug 7/12. Up 48.32%.)

Has it as a Hold but thinks it can do a double from here. One negative is the old CEO, the father of the current CEO, has been doing some insider selling. Doesn’t really like to see that. This one is a great barometer of the economy because they are involved in the housing and aeronautics fields.

Still has a target of $15+. Insiders have been heavy buyers in the $6-$7 range. He has it listed as a Hold but for momentum players who think it will recover and who think they missed the boat, it has a lot of upside potential.

One of his biggest winners. Picked because he wanted to talk about buying stocks that are going up. Classic bust company that is fixing itself. They don’t need any growth in this economy. Margins are fattening.