RB Global, Inc. (RBA.TO)

(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.

(Market Call Minute) He is watching it. It is a good business and will benefit from a weaker or stronger economy.

They do a lot of auctions of mining and forestry equipment. Scores high on price momentum and valuation. They beat on their last quarter. The balance sheet is in great shape. A little expensive on a free cash flow basis. The downturns in the industrial sector can actually be good for this company. Dividend yield of 2.4%.

(A Top Pick May 14/15. Down 0.14%.) This still rates very well in his ranking and still looks like very good value. Has decent free cash flow of about 6%. They are earning lots of money to cover their interest payments.

They sell multimillion dollar items. It is a bit expensive on a PE basis. A clean balance sheet and small debt to equity ratio. They cover their interest by about 25 times. They have had significant earnings announcement surprises to the upside.

This one has gone sideways for about the past 5 years. Although there are no barriers to entrance into their business, they are the largest auctioneer of industrial equipment globally. Thinks they are larger than the next 50 competitors combined. There is about $200 billion of used equipment that transacts every year but they only have about a 2% market share. This gives them a tremendous run way for growth. Just finished a CapX program to build a lot more permanent auction sites so they can now focus on filling those sites and he can see double digit earnings, cash flow and dividend growth. Yield of 2.47%.