New Flyer Industries Inc. (NFI.TO)

A very solid company. Their recent acquisition of Motor Coach had them diversifying a little bit away from transit buses. Very, very well-managed. There won’t be huge dividend growth, but you could see it ratchet up a little. Have a huge backlog.

It is a bit of a sidelong stock as no one has taken a great deal of notice of this stock. He feels it is still very much recommended as a small cap stock.

He took a look at this, but did a pass on it. Has had a phenomenal run in the last 5 years. Just did a big acquisition of a coach manufacturer. Q4 numbers in March were great. The question is, how much is really baked in at this time. On top of that, there is the integration risk of a large acquisition. He would be a little cautious.

This has had a great run, but thinks that there is a lot left in it. Just made an acquisition of MCI, the coach business, so there is some synergy and growth there. As well, they have really been working on the parts business. Their parts business has been 10% of their revenue and is now in the 25% area. Dividend yield of 1.89%.

Has been an excellent stock over the last couple of years. They have consistently won new contracts. They had benefited from a strong US dollar. They have been able to improve margins. It is close to all time highs.

(Market Call Minute.) A really interesting name. The MCI acquisition was a game changer for them. A lot of people missed out on the early part of this trade.

(Market Call Minute.) Bus manufacturer. Likes this very much. With the increased money for infrastructure in the US, thinks that is going to be a big boost for them.

He feels it is a wonderful business with a low rate of organic growth, but finds the CEO to be very impression with plans for margin expansion. The stock has become very popular and he would wait for a pullback and then buy some.

Bus manufacturing and it is consolidating the industry. If you have been in this for a while, consider taking some profits. Valuation is getting a bit stretched. He would need to see it significantly lower before buying.

(Top Pick April 28/15, Up 142.68%) They merged with a cross town rival and are now into motor coaches. They also fixed inventory. They also made another international acquisition. Almost $5 million in backlog. Margins have started to go up and free cash flow is starting to accelerate. There may be a period where we see how they digest their acquisitions. He would not rush into it with more money just yet.

The big money has been made. During 2008 they rationalized their industry and became more efficient. The resulting contracts are starting to kick in. The stock really climbed up. There is a lot of pent up demand. Bus sales is a slow growth industry so he thinks most of the run up is done.

The biggest provider of buses in North America. Stock has had a huge run up. Likes the company but finds it overvalued. Wait for more of a pullback.

STB-T vs. NFI-T. He likes STB-T, but prefers NFI-T. NFI-T has become a great little growth company. STB-T has a very high payout ratio. He is comfortable that they are steady enough in business that they can maintain it. It is more likely that NFI-T raises the dividend in a couple of years than STB-T holding it steady.

The chart is phenomenal. It has gone parabolic, and on these you can usually see a pullback. Basically the risks are growing. If you own, he would recommend you take some money off the table.

(A Top Pick Jan 7/15. Up 121.73%.) Has been doing transformational acquisitions over the last several years. Bought North American Bus Industry first, then the parts business from Orion. More recently bought the Motor Coach Industries, which exposes them to intercity transport buses. Thinks there will be some degree of synergies, but not as much as people might think. Where they may have more synergies are in the acquisition of parts and inventory maintenance. Trading at over 20X earnings, so is not buying any more. If it got into the mid-$30 fairly quickly, he would consider selling some of it.