Colin Stewart Service Corp International SCI-N TOP PICK Aug 17, 2016

(A Top Pick Aug 17/16. Up 34.4%.) A very boring, steady business that is probably going to improve over time. A really well run business and he likes management. Felt it became fully priced, and would look for a better entry price.

He likes the industry because it is a good, predictable business. Demographics are leading to increases in volumes. It pays a dividend. There is a secular trend in the industry.

This funeral company is in a fragmented sector, yet there is good growth opportunity given current demographics. The stock is up 19% over the year, so he feels the stock needs to grow into this current valuation and it won’t happen overnight.

NA's leading death-care company. Consolidator in a fragmented industry. 15-16% market share. Size and scale are a meaningful advantage, as is financial strength. Two closest rivals are encountering financial difficulties. 30% ROE and rising. 

After a couple of tough Covid years, should return to historic 14% earnings as well as dividend growth. Good combination of value and high-visibility, non-cyclical, non-discretionary growth. Testing all-time highs. Yield is 1.7%. 

May be able to ramp up M&A a bit. Many died before their time during Covid, then there was a lull, and now getting back to normal averages. Benefits from scale and operating efficiencies as it makes acquisitions. Dominant position.