John KimRB Global, Inc.RBA.TOCOMMENTMar 21, 2016

Active on the M&A front. Since IPO 14-15 years ago, chart's done phenomenally well over the long term but does move up and down. We have right now this K-shaped economy, which is probably a really good environment for this name (struggling businesses are selling, flourishing businesses are buying cheap). Expects good numbers for next few years.

He doesn't own, but in the space it's a company he'd look to add.

Tends to be very cyclical, usually doing well counter to how the economy's doing. Probably 10-12% compounded return since its IPO 20 years ago. OK if you can either stomach the volatility or trade it. Acquisitions always integrated successfully.

Has fallen far from its highs and getting closer to its fair market value, but that is still 28% away. It could fall to $85.

Doesn't follow it. The stock has gone nowhere in the past three years. Been a lot of turmoil in the company. The CEO left in a huff about compensation. They operate in a good business with EBITDA margins of 25%, but is volume- and price-driven. The business can be lumpy. They lost a client, but they recently growth good growth. Also, there's growing competition. Always trades at a premium, though. Take a profit or hold.

Amazing success story. Auctions heavy equipment. Takes fees, not much credit risk. The world's recovering, and industrials are booming. Multiple is expensive, but deserved. His preferred way to play is through CPRT. Sees only tailwinds, no headwinds, going forward.

Pays a modest dividend. Stock has performed well. The auction business is performing well, while a good economy is helping them.

He hasn’t done a seasonal analysis on this one. But right now he would like to see this broken down trend. If it keeps going down, why trying to catch a falling knife. You want to see the stock moving sideways preferably and then ask yourself what is the point to get in. Something else is going, on. This stock should have done better this year.

This has been performing like a champ. There has been quite a lot of equipment auctioned off over the last couple of years in Western Canada. It has run up a lot, so it could check back, but there is no reason not to be interested in this company.

(A Top Pick Sept 8/15. Up 30.34%.) Interesting in that up until a few days ago, he probably would have been down. One of the leading auction houses for industrial equipment. They just did a large transaction where they are buying an online auction house for $750 million, and financing it primarily with debt and cash on hand.

(Market Call Minute) He needs to do more work on it.

Because of the uniqueness of the company, it has always been very expensive. This goes with cycles when there is used equipment on the market and there are liquidations, etc. Growing globally, and Canada is just a small part of their operations. Wait for a significant miss or earnings warning before buying this.

(A Top Pick May 14/15. Up 3.6%.) A little expensive on a PE and Price to Book basis, but has very little debt. Really good free cash flow. Dividend yield of around 2.6%.

(A Top Pick Sept 8/15. Down 9.87%.) Hasn’t worked out as well, but is still one of his largest holdings in 2 of his funds. Ironically, as markets get harder, auctioneers’ volumes of resales actually pick up. Great balance sheet with no net debt. Score in the top 10% for him on valuation.

(A Top Pick May 14/15. Down 6. 76 %.) This is still a Buy. Has a free cash flow to enterprise value of over 11%. Very low debt level and a healthy dividend.