Barry Schwartz Ritchie Bros Auctioneers Inc. RBA-T BUY Nov 25, 2020

(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%.

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.

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

(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.

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.

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.

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

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.

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.