Saputo Inc. (SAP.TO)

They just reported and it was a small miss. They made a recent acquisition in Australia. He finds it expensive and so it is probably a hold. You get a reasonable dividend.

Just made a milk acquisition in Australia. They've been making acquisitions in New Zealand and Australia in order to export to China. That takes NAFTA out of probably a quarter of their business. Just announced they had made an acquisition of a goat cheese operation out of Wisconsin.

A dairy processor, well-managed, that tends to grow by acquisition. There is no compelling reason for her to want to own this. It is not trading at a really attractive multiple, and tends to be reasonably valued at all times.

Earnings estimates were increased over the last 30 days. They had a 16% lift on earnings last report. ROE is 18.5% and is attractive. He likes the company and it is part of a group of conservative stocks. The ability to grow the dividend is what is attractive.

(A Top Pick June 24/16. Up 7.15%.) It may be in for a dairy war because of NAFTA issues. In some respects, he thinks it won’t have any impact. It buys milk in Canada and sells milk and products in Canada, and the same in the US. Had a nice run until early 2017, but has been a lousy performer year to date. Has potential for acquisitions. Their balance sheet is in great shape. Valuation is reasonable.

A very predictable, stable and mature business. Historically, management has been pretty good at finding acquisitions to shore up any gaps in growth rates. A name that always looks expensive, but people are very reluctant to part with their shares. He is pretty comfortable with the business model. Sees better growth prospects in the consumer staples sector. You could be reasonably comfortable with this stock.

(Top Pick June 24/16, Up 25%) It is all about timing. He still likes the business. The family has a majority position. He is happy to buy more in pull backs. These guys generate lots of free cash and know what to do with it. They are very diversified geographically.

(A Top Pick March 16/16. Up 15%.) Chart shows a nice upward trend from 2015. The company has done some good expansion internationally. Expects this will have a good return over the next year.

This has done extremely well since 2015. They just completed a major acquisition in Australia. It has been well-run, and has grown a lot by acquisitions.

(A Top Pick Feb 8/16. Up 26.61%.) Ranks in the top 3% of his database. Overall yield is a modest 1.3%, but it does pay a dividend. Earnings were up 12% year-over-year on a 2% sales growth. In the coming quarter earnings are expected to be up another 12% with year-over-year growth at about 10.5%.

The only thing that would alarm him, is the whole transpacific trade deal. Hasn’t owned this in the last 5 years, and it has certainly done very, very well. Until Trump does some strange Tweet about dairy farmers and how Canadians are flooding their market, be happy to own it.

Ranks 20 in his database. Yield is only about 1.3%, but what you are really hoping for is that earnings continue to grow with a 17.5% ROE. Thinks there is still good opportunity going forward.

(A Top Pick Nov 26/15. Up 46.61%.) He is still buying at this price. They have a good International strategy. A defensive name. He is looking for $65.

A wonderful shareholder friendly company. Always increasing the dividend and always buying back stock. They think about smart capital allocation before making an acquisition. There is a wonderful big runway of growth for them. Not cheap, but good stocks are never cheap.

(A Top Pick July 21/15. Up 29.12%.) There was a listeria scare with some of their chocolate milk, which had an impact on the stock. However, their last quarter was very strong. They are having an issue right now because of low dairy prices. The balance sheet is in good shape and he thinks they are ready to pounce and make some acquisitions.