New Flyer Industries Inc. (NFI.TO)

(A Top Pick July 5/13. Up 15.9%.) Paying just under 5% in dividends. Went through a period of some difficulty when municipalities were tight on cash. We are starting to see the other side of that. A lot of the buses they produced were contract signed during that time. Some of the newer contracts will carry a little better margin.

In a pretty challenging industry in terms of bus building. Most customers are transits which are funded by state and provincial governments, which have been going through some pretty tough fiscal situations over the last few years. Things seem to be picking up and they have been doing what they can in forming strategic alliances, reducing costs and getting orders. The business is still challenged because of so many different buyers and so many different requirements. On the cyclical business, there could be some upside still. Yield of about 5%.

A late cycle economy play. You are in the sweet spot of that cycle right now. Their backlog looks good right now. Potential for dividend increases. Very well managed. If you have 3-5 years, it is worth adding to.

(Top Pick May 29/13, Up 15.74%) They may not be as profitable this year, but then when the market begins factoring next year’s earnings it will go up.

(Top Pick Mar 27/13, Up 26.95%) Has been cautious about building out their production lines. Thinks you will see an increase in the dividend.

(Market Call Minute) Likes the prospects. Healthy dividend. Green busses are an area of expertise and thinks we will see demand grow over the next two years.

Well-run company. Have some good prospects ahead of them. The dip in November had a lot to do with the US government getting hung up creating all kinds of noise. That is now behind us. Have good backlog and will continue to grow that.

Mainly a bus manufacturer. Likes the consolidation in this business. There are now a smaller number of players in the industry and hopefully it is less competitive. There is an emphasis across North America on improved public transport, however, a lot of governments are feeling a fiscal squeeze so there are some headwinds for them. Longer-term, this is a good company. Yield of 5.6%.

(A Top Pick Dec 14/12. Up 34.42%.) Still struggling. 2014 will be a particularly great year. He classifies this as a Hold. Expects to see higher margins in 2015. Once they get through their backlog in 2014, with an improving economy, he sees this is eventually going to $20. 5.5% dividend.

(A Top Pick Dec 6/12. Up 38.33%.) Pays a yield of about 5.5%. Stock has had some difficulty in the last 2-3 weeks. Reported their 3^rd quarter results. Results were fine and backlog was fine but there were some concerns. Had been on a production path of about 48 buses per week, which had expected to be bumped up but the company is going to stick with the 48 buses. There was also some concern about margins. This has made for a more attractive entry point and this is a great opportunity to step in.

Have done fairly well over the last year or so and he thinks this will continue. Recently purchased North American Bus Industries, which opens them up more to parts and service business as well. Municipalities are starved to add capacity but can’t afford it at the moment. However there will be money directed towards transportation. Good yield of 5.2%. Would like to see it under $10.

Recently struck a deal to buy North American Bus Industries. That is their 2^nd deal this year. 5.28 % yield. Trading at about 11.5X next years earnings. Have been held back a little bit by funding issues of municipalities, but that is going to work its way through in their favour as fleets age. Backlog has remained strong. A number of analysts have increased their targets.

Had some management changes a few years ago bringing in some people who were much more production and operation oriented. There is going to be a big build out of transportation systems somewhere along the road here. Currently North American municipal governments are quite strained in what they can spend right now. This is in a good position to take advantage of this long-term.

This is kind of a play on the US recovery. Sell buses to transit commissions, which are ultimately funded by the taxpayers. Had a very rough go of it over the last 5 years but things are getting better. Pays a nice 5.7% dividend which he thinks will go up over the next few years. Competition is disappearing. Brazilian bus-maker, Marco Polo, bought a 20% stake in this company at $10.50 a share.

Has done fairly well. They are on the right track. Brought in new manager about 3-4 years ago, that was much more production efficiency oriented. Backlog has been growing. Municipalities are investing more and more into mass transit and this company is extremely well-positioned to take advantage of that.