New Flyer Industries Inc. (NFI.TO)

There is a moat around the company. It is difficult for competition to come in. It is not well known. It is up today despite the market being down. The sector is in favour. Stay in it.

This was recently a Top Pick of his, but has gone up since then. At $15 or under, it would be a really good buy. They are getting more and more revenues from their parts and service business which they have diversified into. One of the major bus manufacturers in North America, and are going to participate as cities have to not only renew, but expand their transportation fleets. Pays about 3.5% dividend yield.

Had a very good year and is up to recent highs. Recently increased their dividends. A great company. Have a huge backlog and are a leader in their field.

The largest manufacturer of commercial buses in North America. Have a very neat system of being able to use one platform to accommodate a variety of fuel technologies. Sees it growing nicely as the services and maintenance business improves. Nice dividend yield of 4.07%.

This has been a consolidator in the industry, not only in bus manufacturing, but in after markets parts and service as well. Have operations both in the US and Canada. Going forward, he would expect to see more money being spent on revitalizing municipal transportation networks. About 80% of their revenues come from the US. Yield of 4.12%.

(Market Call Minute) Not a lot of growth. Based on municipal contracts. You have to look at the back log. It is a low margin business.

He is attracted to the overall business, which is a good one long-term. However, it is never going to be one of these sexy super high growth stories. Probably a little bit pricey here. Dividend yield of 4%.

Largest bus manufacturer in North America. They have 35% of the parts business, and 35% of busses run on natural gas. There was pent up demand when the economy started to pick up, but that is now used up so if you are a trader you take profits, or if you are a long term investor they are going to continue to do fairly well.

Pretty much the North American premier bus manufacturer. Have operations in both the US and Canada. They deal in parts and services as well as bus manufacturing. If you are looking at the health of the US economy today, which is quite strong, it is going to allow a lot of municipalities with higher tax revenues, to look at upgrading their bus fleets. This company will be a beneficiary of that. Yield of 4.45%.

This had a good run, but is now going sideways. There has been some good news on the company and they continue to make progress in signing new contracts. As a junior, this company could do quite well. Hold onto your position, but keep a very close eye on it. 4.7% dividend yield.

Well-positioned, and the management over the last few years has put much more of a focus on manufacturing and efficiencies, and over the coming years they will be beneficiaries as fleets are renewed in cities throughout North America. They participate in electric, hybrid and traditional bus lines. Not only are they one of the few North American manufacturers left, but also have a good parts aftermarket business that has been growing significantly. Yield of 4.49% which he feels is safe.

Good, solid, long-term hold. Sold off a little bit from the highs, but still yielding 4.5%. You should see little better numbers coming out next year. Recently increased their weekly production and are up to 51 units per week. Contracts keep rolling in. Building transit buses is a pretty safe business. Have started getting some very nice business out of their after parts business as well.

Bus manufacturing. An interesting business that is quite stable. They sell a ton of buses into the US. The US has been making more and more money as the economy improves, and municipalities/states have been buying more buses. Likes the shift they are making into making acquisitions. Have bought a couple of companies over the last few years, including parts makers, and are getting to be a much more reasonable player in the after parts market business. EBITDA per unit, in this last quarter, blew analysts’ expectations away. Dividend yield of 4.55%.

He is frustrated by this one. It is not doing well, which surprises him. The bus business is coming back slowly. There has been a lot of consolidation. Have gone from a North American of 5 players to 3, so you would think pricing should improve. The US is slowly coming back to life, and municipal budgets are back a little bit. Bus ridership is going up. Put in some bids and try to get it cheap. 4.8% dividend yield.

This is a business that did have a little bit of problems 2 or 3 years ago when some of the orders dried-up in the municipalities that buys the transportation buses from them. The problem seems to have been put in the rear view mirror. Recently announced a small addition to their bus production. There is a huge backlog on this company. Over time the margins have improved a little, but they still have a ways to go. As they get more confidence and firm orders, there is still room for production growth increases. Solid yield which is well covered.