New Flyer Industries Inc. (NFI.TO)

This has basically been a one-way road, and that has been up. Whenever you see stocks that have moved up as significantly as this, you have to position yourself for some sort of correction. They have lots of operations in the US and are not going to be affected by tariffs. Dividend yield of 2.4%.

He likes what they are doing, and how the North American fleet is expanding, and how they are participating. The basic business model makes sense.

This has had a great run. They’ve had a lot of great contract awards recently and there seems to be no slowing down on demand for buses. A lot of the good news has already been priced in, and they won’t necessarily have that much more good news going forward. If you’ve own it and have made a good profit, he would consider taking some profits and maybe hold a smaller position.

This has had a huge run. He is a little nervous about some of the Canadian companies that have big US businesses. The political environment is not that favourable, so he has a Short position on this.

There is still a lot of room for them to expand and to continue to do well. They just did an acquisition of a motor coach business and there is still cross selling to come.

A really neat company. Produces buses and sells them all over North America. They are not at risk of US nationalists’ policies, because they have a lot of production facilities in the US. They have really long contracts with different municipalities, and their backlog has continued to grow. They can fit the buses up with about 1000 different options, which are very profitable.

This had a great run going from about $10 several years ago, up into the $50 area now. He would prefer Linamar (LNR-T) instead which will have $8 a share of earnings, and this one is probably selling at 15-20 times earnings. The urban bus market is exciting and fits in with everything, but thinks you would have better opportunities in Linamar or Magna (MG-T).

(A Top Pick Aug 3/16. Up 42%.) There was a lot of concern last year about one of their major shareholders selling a big position, but that didn’t change the fundamentals of the company. The company is winning contracts, making lots of money, very efficient and the margins are good. He still likes this.

They build buses. NFI-T and the TSX have negligible correlation. There is a bus replacement cycle coming and so NFI-T could do very well, irrespective of what markets do. Earnings growth is reasonable. It is not expensive. Buy on pull backs.

Just announced a $51 million contract from the Transportation Authority of Santa Clara. They manufacture public transit buses and luxury motor coaches, and are the dominant player in what is effectively an oligopoly. This is a backdoor play on the US as most of their revenue comes from state and local transit authorities. Dividend yield of 1.7%. (Analysts’ price target is $63.00.)

This stock can keep going. It is a really good company, and they know what they are doing. The rate of return on capital is in the 20s. Valuation still looks very reasonable.

A company that is extremely successful. They have been firing on all cylinders. More than 50% of their actual production is for south of the border. They produce an excellent product. A bit expensive, but the way their last report came out, he is taking a hard look at this one again.

You could buy this today. If you really want to be cute, there are 2 places to hang your hat for a Stop. One is at around $51 and one around $47. Indicators are just starting to turn up, so there is good momentum behind this stock.

Transit and motor Coach manufacturing. Although it trades on the TSE, it is very much US focused with 90% of their sales come from the US. The stronger US$ helps on the earnings side of things. Dividend yield of 1.8%. (Analysts’ price target is $57.50.)

He missed the bus. They are the consolidator in North American for all coaches and busses. There should be an infrastructure trickle down into this business. He is reluctant to pay this much for it, however.