New Flyer Industries Inc. (NFI.TO)

A bus manufacturer. 15X earnings. There is a big position in terms of shareholder ownership of a company called Marco Polo, European bus manufacturer. He likes their backlog of $5.3 billion, which is more than 2 years of revenue. They continue to win orders and are executing very, very well. Costs are going down. In the last quarter, they increased their dividend by 37%. Dividend yield of 2.35%.

Bus manufacturer. He was taking a position in the $27 range, and it ran to $35, so he chickened out. He is hoping it comes back to $30 and will then get back in.

He is annoyed that he missed the move. This one got away on him. He thinks there is upside for them. They will be making Nat gas buses and are looking at electric models also. Add them on a pullback. He is not looking for the old growth going forward.

(Market Call Minute) He owned it in the past and is looking at it again.

They manufacture buses for intercity as well as city buses and have announced a large number of wins. A dominant player in an industry that has consolidated from 5 players into 3. Made an acquisition at about 6X EBITDA, and they trade at a higher multiple than that at 8.5X EBITDA. Feels they have been light on some of the synergies they are going to get from the acquisition, so will hopefully report better numbers and margins going forward, and beat the street estimates. Dividend yield of 2.46%.

(Got into this at $10. Sell?) Trading at 40X PE, which scares him. He would call this “priced to perfection”. If it ever has a hiccup, it goes down an inordinate amount. If you’ve had a 4 bagger on it, an easy thing to do would be to trim.

(Market Call Minute.) It has moved from $15 up to $41 in the last 12 months.

Bus manufacturer and have done a good job lowering costs and consolidating their business. Just got into the highway coach bus business. They have an ambitious target to increase their margins and to continue growth. Leverage is still high, but the stock has done very well.

(Market Call Minute.) This stock has done so well that you have to hold onto it, and keep on letting them execute. Take some profits, but let some ride also.

It has been parabolic for the most part of the year. Most like this tend to pull back. If you are holding for a long time you should be okay, but if you are looking short term and you see a top, then get out.

(Market Call Minute) It is on a tear. Behaving well. Weak Canadian dollar continues to help them.

This is one of the great Canadian companies. There is a huge bus replacement cycle happening in the US, and there is more and more capital being allocated to this. The company is capitalizing on the huge industry trend, and at the same time management is doing a great job in operating facilities efficiently and providing the product to the different municipalities. Thinks they will continue surprising on the upside in terms of their profitability and their margin expansion and there will be an increasing ROE and ROC. Feels there is still much more wind behind their back. Run by a top management team. There is a multiyear cycle happening right now.

This company just continues to deliver on their numbers. Management is so confident in their business that they just bumped the dividend last week by 35%. Acquired MCI Motor Coach last year and there are lots of synergies as well as lots of higher margin business that they can do in the parts area, a much more profitable area than building buses.

Good value with upward momentum. It is getting steeper, but not getting overextended. He thinks it will go higher.

This has done nothing but execute well, deliver the goods, grow their backlog. They are growing very fast and the market cap is now big enough that people are starting to pay attention.