New Flyer Industries Inc. (NFI.TO)

A company that he would own in general, just because it is a really good company. It has had a tremendous run. Any time a company has had a run like this, you want to be a little cautious. However, the valuation of this company still looks pretty cheap. He would go into it slowly and build a position on low pullbacks. Their track record is tremendous, probably because there is not a lot of competition.

He keeps watching, hoping it is going to come back a bit so that he can buy it. He likes the industry. The acquisition they did and the consolidation has worked out well for them. The business is growing, and it pays a decent dividend that he thinks will increase over time.

Had been one of his Top picks, but hasn’t been buying it for some time. His cost base was well under $30. The company has been in transition for a few years, the most notable being when they merged with Motor Coach International. They are now the dominant bus and coach manufacturer in North America. If we do see significant spending on infrastructure, a lot of that is going to be going into transportation, and this company will get its fair share. He feels the prices are anticipating that. He wouldn’t sell this, and there may be opportunities to buy it a little bit lower.

This owns a huge market share in the bus industry. The stock shows a big run up since early 2015, and has been trading in a range. His chart is showing a head and shoulders. If it breaks down below the shoulder at around $36.50, that would be a very bearish pattern. It is definitely a good company and a good stock, but right now there is consolidation. If it reversed and went above the high it had mid-year, that would be a positive sign. The support level is at about $32-$33.

Has done very well since the merger with Marco Polo, and also with getting the cost structure in line, just in time for the takeoff in North American bus orders. The stock has come a long way, so it will probably take a bit of a digestion process. If they can execute what they think they can, then he thinks there is further upside.

They had been on a spree of acquisitions in the last couple of years. It pulled back off the recent high. He likes the business model. Infrastructure in the US should benefit them. They meet all the ‘buy America’ regulations that local transit authorities consider when doing their procurement.

Easy money has been made, but they have a dividend and there is room for that to grow. Also, expects there will be more gains, because the stock of buses out there is pretty old. The industry in North America has consolidated tremendously.

This stock has had a big run. Not a really expensive stock, but not a cheap one. Because they are dependent on states and government budgets, there is inherent risks. Given the run it has had, it is not a bad time to take profits.

A great company to own. It has created a lot of value for long-term shareholders. Shareholders probably got a little scared over the last 3 months or so. They had a few hiccups where Marco Polo, one of their big insider holders, sold some shares. He doesn’t see this as much of an issue, because probably their position was as big or bigger after the sale then when they initially invested. They had a New Jersey contract that was put on pause, which is more due to New Jersey budget issues then New Flyer issues. That is now back in action and they are delivering buses to New Jersey. There has been a bit of weakness in their aftermarket parts business, but management has been saying that this is weak because new order bid activity has been so strong.

It is a solid free cash flow story. He does not know how it looks under Trump. It seems as though the order book is solid. He missed it. If free cash flow got into double digits he would definitely look at it again.

He believes it sold off because of regulatory delays with a New Jersey order. It seems there is still good growth visibility the story.

Manufactures buses. Q3 earnings are going to come in a little bit light, because a client didn’t have the money to pay for a delivery. Expect that will get moved into Q4. Trading right at its 200-day moving average. If you can pick a stock off at the 200-day point, you should do well. On his radar, and is now looking to Buy. Small dividend of about 2.5%.

Has owned this in the past. It has started to slide down a little in his technical and fundamental rankings. They had an issue with New Jersey that has now been resolved, but that could put a little crimp on the next quarter’s release, but following that you’ll probably start to see things accelerate. He likes the overall business and feels they’ll continue to grow. (See Top Picks.)

This has been consolidating over the summer with the market. Given that we have been in a rather illiquid market, the news that their backlog is slowing had an impact. It is now trading into support. There is strong support around $34-$36. If it can hold here, he would stay in the stock. If it broke down through that, that is where he would exit. Give it a few days to see if it can hold support, but if it were to break $35, he would move on.

There was a parabolic move earlier this year. It washed out and is now in a bit of consolidation. We are getting higher highs and higher lows still. It if takes out the last low, then you might be in trouble.