New Flyer Industries Inc. (NFI.TO)

Is this a hold over next year or two? Well positioned in the bus manufacturing industry, but their after market business has been a bit soft. Longer term, the sector will do well. Demand will be decent for the next year or so. Valuation is too high right now. Would take a look around $50. (Analysts’ price target is $67.)

It is losing a lot of long term momentum. We have not taken out any big supports but the $48 2017 support is pretty critical. If it break these then you have to question it. It's okay right now and you could buy into a dip.

It's a winning story. It's on his watch list. Don't double down following the recent pullback--doubling down isn't he style of investing.

Build buses in Winnipeg and the US. He watches this company. The product seems to be reaching al the US. A growth situation. Good quality.

(A Top Pick Aug 2/18, Up 9%) It is a slow and steady company but he likes the valuation. They recently increased the dividend 15%. They are good at making small acquisitions. There is a lot of spending going on from government.

Previous to this week was known as New Flyer. They missed on their last earnings. It is a well-run company with a good backlog of orders. From a seasonal perspective, however, manufacturing is not in a peak season right now, so he thinks there is now a chance of consolidation. He would become a buyer on a move back above the 2018 high.

(Past Top Pick on April 26, 2017, Up 14%) Still opportunity here for the next few years. A core holding for him. Governments are upgrading their fleets, including green buses, which NFI is developing (i.e. battery-driven buses). Most of their customers are in the U.S.

It is a valuation and timing thing. They had a pull back on Q1 numbers. He likes it as a buying opportunity and longer term. (Analysts’ target: $67.00).

It's corrected 13% off its all-time high, so now is a good entry point. They had a rare earnings miss and the market overreacted last week. But NFI raised their dividend and issued guidance going forward. NFI remains the leading player in this space and he continues to like it.

He's owned this for a long, long time and it's one of his biggest holdings. Their after-parts business struggled last year, but they are making up for that now with that business growing again. They enjoy a record backlog now. Lots of cash. They think a few steps ahead and can expand into other areas of buses. Multiple is only 16x forward earnings. He'd even buy it here. This will be a $60 stock.

He would buy it here and thinks it is a great company. First quarter orders were solid again and reconfirmed the backlog of orders remains about three years. He would not be surprised to see a dividend increase soon. Yield 2.2%.

(A Top Pick May 24/17 Up 6.2%). A boring is beautiful old industry company. They recently posted excellent quarterly earnings growth of 16% year over year. They made an acquisition in December that opens up favorable margins. He expects a dividend increase in May.

It ranks 21 in their top 300 database. Overall, he expects earnings to be down slightly after the 13% increase last quarter. Free cash flow is 3.5% and earnings estimates are being revised upwards. Overall a great opportunity in the US and Canadian bus sectors.

He really likes it. They have a lot of plants in the US. So they have a bargaining chip with respect to NAFTA. They have not touched on share buybacks and he thinks they could grow the dividend.

It does not grow much organically. It is mostly a replacement market. 3-5% growth. They have done well through acquisitions. Their recent backlog is really strong and that is why it has run up. He would reduce it.