Parkland Fuel Corp (PKI.TO)

Think of this company as the middleman for fuel. They buy fuel from the refineries, and then sell it to end consumers, plus they have a bit of a wholesale division as well. They own a lot of gas stations, and do a lot of commercial type stuff like propane to housing. As they get bigger, they get better at negotiating power with the people they are buying fuel from. A very good company. A good entry point. 4.6% dividend yield.

Alimentation Couche-tard (ATD.B-T) or Parkland Fuel (PKI-T)? A tough call. Alimentation is in Europe making all sorts of acquisitions and is an acquisition driven story. This one is making smaller acquisitions, but their main thesis over the next 5 years is cost reduction in order to improve margins and is largely NA focused. He would choose large and safer over a smaller Canadian company, but there is nothing wrong with this company.

It is a fuel distributor. Gas stations and other types of fuel distribution and transportation. Earnings grow on acquisition. Nice yield and the dividend grows.

You need to be aware of fuel margins. Oil costs are steady as are gasoline costs right now so they should be able to do a little bit better. Things should be okay for them in this environment.

A fuel distribution business, mostly retail gas stations, but also wholesale and commercial. Largely in Western Canada although have made some Eastern Canadian acquisitions, such as Pioneer Fuels. They are a growth by acquisition company, and there are some big assets that will be coming up. Loblaw’s (L-T) has talked about putting their gas station assets up for sale. They raise their dividend a little bit every year. Dividend yield of 5.08%.

Some of their business is fuel distribution and marketing, which has been under pressure a little. They also own a very large gas station/convenience store business. A pretty good stable growing business, and well-run. He would like to get this at a lower price.

(Market Call Minute.) Fuel retailer. Good valuation, good volatility and a good yield at 4.9%. He has a small holding.

This has been stuck in a range lately. There were some concerns about fuel volumes in Western Canada, and also in North Dakota where they have a growing business. Recently made a nice acquisition of some fuel stations from Imperial Oil (IMO-T). They are becoming more of a retail fuel station operator, than a wholesale reseller of fuel. That should gather a higher multiple. You may see an acquisition in the next few months, that will probably come with an equity issue. That would be a great way to increase your position. Dividend yield of 5% is fairly sustainable.

(Market Call Minute.) A refiner and a retailer of gasoline. They are driving costs down. Last quarter was good and they continue to grow. Nice, steady growth. Making good margins.

Still looking at this, and is sort of liking what is happening. Has a reasonable yield and some reasonable growth because of the acquisitions they have made. If you can get 5%-7% growth, you should own it. Well diversified. It is just a matter now of digesting the acquisitions.

He is looking at them now. They acquired Pioneer and he now sees them like ATD.B-T. Good consistent dividend payer. Attractive total return.

Sees this as a good long term, growing, practical, well-managed company. Thinks it will do well over a long period of time.

Mostly in the fuel distribution business, from gas stations to loading oil onto railcars. For a long time it had a deal with first Petro Canada and then Suncor where they participated in the refining margin that Petro Canada earned. That ended at the end 2014 which hurt them a little. Likes the stock, yield and the business they are in. One problem is that a lot of their business is in Alberta. He likes the company.

This shows a nice steady uptrend from 2013 followed by a break this year. It is showing either a base building or a bounce. Had a base building at around $18. Currently testing a Volatility Stop at around $22.45. If it breaks, it probably goes down to one of the significant averages, probably around $21. A good stock. He would like to see it get back up to challenge the $25 level, before he would feel the long-term trend is going to hold. Dividend yield of 4.7%.

(A Top Pick Aug 29/14. Up 12.91%.) There are 3 ways to have growth. 1) Acquisitions, 2) overall strong demand or 3) reduce expenses. They are acquiring assets and it is very much a scale business. They have built up a very good team. Just closed the acquisition of Pioneer which gave them a lot more gas stations in the East. Given the challenges in the energy space, there are a lot of assets that can potentially be up for sale, and that is their goal. She thinks this continues to go.