K-Bro Linen Inc (KBL.TO)

On his radar screen and has been for a long time. Likes the business. Good revenue stream. There are possibilities for them to add ancillary services, such as food or janitorial services and continue to get more contracts and more growth. However, you are paying a high price for a good quality company. Another 10% pullback and he would be very interested.

Laundry and linens. About 70% of their business comes from servicing hospitals and 30% from hotels. Recently announced a new growth initiative in Saskatchewan where they will have to build a new central Laundromat to facilitate some of the laundry from the provinces. Analysts’ estimates may have factored in further acquisitions. There are other areas of growth for this company including the Maritime provinces.

(A top pick June 21/13. Up 7.61%.) Linen service company. They won a new 10 year contract in Saskatchewan. Nice and steady. Good income. Doesn’t expect more than 7% stock increase. Slow and steady. If the market and the economy are going to roll over, you are going to want to own it. 3.3% dividend yield.

Linen processor and distributor. Most of the customers are governments and institutions. Customers sign 10 year contracts so it has the most steady cash flow that you can possibly imagine. Dividend has been growing slowly over the years. 3.46% yield.