New Flyer Industries Inc. (NFI.TO)

There was a parabolic move earlier this year. It washed out and is now in a bit of consolidation. We are getting higher highs and higher lows still. It if takes out the last low, then you might be in trouble.

Long-term, he loves this company. They have continually performed, quarter in-quarter out. Strong balance sheet and good fundamentals. In the shorter term, they have been in the news a bit more than long-term shareholders are used to. Had a New Jersey contract cancelled, due to financial issues on the New Jersey transit side. That is behind them already. There was also Marco Polo out of Brazil, a large shareholder, which recently sold a lot of shares, and a lot of investors got spooked. On any pullback, he would consider it as a buying opportunity. Shares are cheap at 13-14X next year’s earnings.

A phenomenal turn-around. This is a stock that should have been looked at in years past. They are reaping their reward. It is not a fast growing market. You should start taking money off the table.

This makes buses for the North American market. They have a very good niche. The chart shows that the uptrend is accelerating and is very healthy. Make sure you check the RSI, and don’t Buy when it is too overbought. On any small retracement, it is time to Buy.

Transit is definitely a big part for many governments, and this is one of the bigger players out there. The recent setback is temporary an this is something you should consider accumulating.

Manufactures buses and has a tremendous backlog of orders. They have a long runway in front of them of deliveries of new buses. Trading within a whisker of its all-time high. As this market gets going, it is likely to break out and have another leg higher.

(Market Call Minute.) Wait for a pullback in order to buy.

(A Top Pick Aug 12/15. Up 131.15%.) A bus manufacturer and it was a long-term turnaround story. He picked it because the industry was consolidating and buses had to come back. Thinks that in the next couple of years there is going to be dividend increases.

Doesn’t expect it to double again, but thinks you can get another 10%, 15%, 20% out of it. Stocks that hit 52 week highs tend to keep doing that for a while. Dividend yield of 2.3%

Improving return on capital is good, even if it is low at the moment. They have an impressive track record and if they keep it up there is no reason the valuation should not keep going up.

Trudeau announced divvying up funds towards transit, which is a definite net positive for this name. You are seeing net trend both in the US and Canada where there is an increase in spending on buses. The stock is still reasonably valued. In the short term, there is a big question mark around New Jersey, they are holding back on producing more of their New Jersey buses. Dividend yield of about 2% and this could go much, much higher.

Recently acquired Motor Coach International, a fairly large acquisition, and are now the largest producer of buses in North America. Valuation is a bit stretched, and has been waiting for a pullback. If you have a longer than 2-3 year time horizon, you could Buy at these levels.

Made a big acquisition in the US to get them into the aftermarket part of their business. She would wait for a pullback to initiate a position. They had a good quarter and the stock reacted positively.

(Market Call Minute) Very expensive.

(A Top Pick June 27/16. Up 8.3%.) This is a play on building out buses, both motor coaches as well as municipals. There has been a clamp down on spending in US municipalities. As a result, the age of fleets is older, so there is going to be a replenishment cycle.