Parkland Fuel Corp (PKI.TO)

Bought in a month ago. He will increase his weight in it. The dividend is sustainable and should grow. Their acquisitions are very accretive.

Likes the company. Thinks it is solid from a fundamental standpoint. Kind of in the defensive camp, where you are essentially holding it for the yield. Doesn’t see it taking off or doing exceptionally well over time. When we get into a rising interest rate environment, these more defensive names tend to underperform. Because of this, he would be cautious.

(A Top Pick Aug 27/13. Up 23.73%.) Very stable company. They make acquisitions including a train yard, which is tapping into the “crude by rail” concept. Nice dividend.

She is looking for 2 catalysts over the next year or so. Stock sold off quite sharply this quarter. Management is committed to $200 million for this year, with part of it set aside for an acquisition. Doing the math, this could be a sizable acquisition. Also, with their Suncor (SU-T) contract, refining margins have come off, which lessens the volatility of the earnings. Yield of 5.15%.

Have done a great job in replacing their lost Suncor contract. Thinks the 5.1% dividend yield is pretty safe for 2014 with a 71% payout ratio. Have a really good history of growing by acquisition. Balance sheet still has flexibility to be able to make more acquisitions. Not a whole lot of organic growth right now and yet it is trading beyond its 5-year average. He would buy this on a pullback.

5.5% Bond Maturing May 28, 2021. Less than two times leverage, assets in oil and gas. A good story and a solid company.

(A Top Pick June 24/13. Up 38.73%.) ROE was coming in a little lower than what he was looking for, so he exited. This is still a Buy for investors.

(A Top Pick April 2/13. Up 36.83%.) Management team has done a really good job of growing the business. Besides the fuelling business, they own a chain of gas stations. Most of the assets are in Alberta, but have been growing out East as well.

Consolidation strategy. Have demonstrated they can do it. They trade at a multiple at a rate higher than the businesses they are acquiring. This roll up strategy should prove successful. 5% sustainable yield.

(A Top Pick April 2/13. Up 8.64%.) This has sort of done what it was supposed to do. It is steady and reliable, not spectacular. Good dividend of 5.9%.

(Market Call Minute.) Dividend yield is attractive but he wants to see how they do after they get through their Suncor (SU-T) contract which is going to happen in the 1^st or 2^nd quarter this year.

Distribute various kinds of fuel. Expect they are having a pretty good year given the cold temperatures. This is a long-term situation. Had a switch in their contract with Suncor (SU-T) but they seem to be handling that. Likes the yield.

This is not a growth business. A very mature business and very well managed. Dividend is probably safe for the foreseeable future. You really buy this for the yield.

Right now the dividend is safe with an estimated payout ratio of 65%. However it is pricey at 9.4X price to cash flow. Lost the Suncor (SU-T) contract. Liked what he saw in the last quarter, but wouldn’t be buying yet given how expensive it is. Also, wants to see more results on how they do post-Suncor contract dropping off.

Probably has one of the best management teams in Canada. Made some acquisitions and have been fairly acquisitive in their growth and he thinks this will probably continue. This is one you could buy at these levels. Longer-term it goes much, much higher. Also, has a nice dividend.