New Flyer Industries Inc. (NFI.TO)

The program was interupted by a news flash from Washington, and wasn't inished. Top Picks are not talked about today.

A great company. He bought this at around $40. It is starting to get a little expensive. His target price is around $52-$53. If you are active, you could probably trade this in the not too distant future, but if you are more of a buy and hold person, it is something you can continue to keep in your portfolio.

A great growth story. The dominant player in public transit, buses, as well as luxury motor coaches. 90% of revenue comes out of the US. They are also a growth by acquisition story. They de-levered substantially to the point where the balance sheet is now under levered, so he expects dividend growth. Expects they will also be a beneficiary of US infrastructure spending. Dividend yield of 1.93%. (Analysts’ price target is $56.)

This is in a longer-term theme that he is seeing in the US. There wasn’t a lot of spending in the infrastructure space in the US for a long time. There is a backlog of orders to go through. Dividend yield of 1.94%. (Analysts’ price target is $56.)

She thinks it is more likely they will make another acquisition rather than getting acquired. Over 12 to 18 months they may be looking at something.

Their last quarter was solid. They had some problems in New Jersey. There is a relief rally going on. It is a great company.

This has been in a great position to benefit from infrastructure spend, and will continue to do so as North American transportation fleets need to be improved. They have done an amazing job of tucking in acquisitions, and are now a real dominant provider of coaches. He is looking for things where a little disappointment has set in, as opposed to paying for all the good news.

What they’ve accomplished is fairly impressive in terms of improving operations. Did a recent deal which makes a lot of strategic and financial sense. The stock has had a healthy run.

The largest North American manufacturer of buses. They generate about 90% of their revenue in the US. Operations are in Winnipeg and Minnesota. There was some concern about what the Trump administration would mean for them, but they are part of the “Buy America” provision and are complying with those rules. There is considerable backlog of buses they need to make. There is going to be infrastructure spending. About 70% is city buses and about 30% is Motor Coach. Dividend yield of 2.2%. (Analysts’ price target is $53.50.)

This company has been going gangbusters. Everything has sort of worked in their favour. Just reported that they have a backorder of over 10,000 buses, which will keep them busy for 3 years. Their Motor Coach acquisition has worked out for them very well and is highly accretive. When everything is going great, it is too late to start buying shares.

The largest bus manufacturer and parts distributor in North America. Expecting earnings to grow by 37% year-over-year. There are great opportunities for bus manufacturers in North America. Dividend yield of 2.14%. (Analysts’ price target is $51.29.)

A very interesting company. A Canadian manufacturer of heavy-duty buses, that has been extremely successful in selling into the US. Believes that two thirds of their production is now in the US. They continue to have a big order backlog. Their buses are treasured in the municipalities where they are sold. 2.3% dividend yield.

Another great Canadian growth story. Thinks there is a demand for building out the infrastructure in North America, and a finished product manufacturer like this stands to benefit. The stock has had a big, long run. He still likes this very much.

A big performer over the last 18 months or so. Just recently announced they were increasing production starting this quarter at about 4%. Backlog has grown. This has come a long way from $6, but still has huge cash generating potential. Expects more M&A (just bought Motor Coach) or an increase in the dividend.

This has been in business for a long time. They have operations in Winnipeg as well as in Minnesota. Many of the cities get grants from the US federal levels. Having operations in the US, they’ve been compliant with the Buy American provisions. They’ve also helped consolidate the bus manufacturing industry, so now there are only about 3 or 4 main players. Very well-run company. He doesn’t expect any changes to the Buy American provisions.