Savaria Corp (SIS.TO)

This has been a phenomenal company and continues to grow. Demographics are in their favour, and there is tons of room for it to continue to do well longer-term. Valuation has always been up on this, trading at about 15X EBITDA. It is never cheap, but that is often the case with these companies that continue to grow. He wouldn’t be surprised if they continue to grow organically as well as with acquisitions.

Makes equipment for people with limited mobility. They acquired Shopper’s Drug Mart’s home division. One of his favourite companies in the healthcare/industrial space. Demographics are in their favour. Has a great balance sheet and good management. Hiked their dividend by 30% last year, a very significant statement by management. This is one of those long-term names that he thinks will continue to make good acquisitions and continue to grow, and continue to post higher earnings.

Chart shows a strong upward trend this year, with a recent break down followed by an upward move. It has now formed a little base at around $10.60. You could take an initial position, and if it got down to the $10.60, take the balance. It is always good to pay more for something, as it gives you a confirmation.

One of his top 5 positions. Insiders sold a small amount of shares, but they will be there for a long time. They sell bread and butter equipment in the health care industry. They are doing a great job, growing their distribution in Canada and the US. They have significant sales in the US if you want exposure to healthcare post-election.

This does elevator lifts and chairlifts for elderly and disabled. He likes the demographic wave they are facing. The company has executed very well. They just released their 2017 outlook, which was about $10 million lower than their previous outlook. Not a game changer for the company, but is probably the 1^st execution flaw that they’ve had, so it has pulled back a little. Thinks they are itching to do an acquisition. A good entry point.

A long-term demographic story. They make stair lifts and elevators, as well as conversions to vehicles for mobility. From a demographic standpoint, the company will continue to grow as their market grows. It is starting to get pretty expensive. He sold his holdings for valuation. There has always been talk of them doing acquisitions. They’ve done some and are pretty selective. Trying to get it on a pullback, but if you can’t do that, perhaps buy a partial position.

Stair lifts, etc. This one slipped through his fingers. They have had a really nice run. Their cash ROE is 23% 3 years running, above the level that he likes to see. If you own, continue to Hold, and if you don’t own look for a pullback.

Health care equipment. This was a former Top Pick of his and he still likes it. It does all the right things. Recently increased their dividend by 30% and are making good acquisitions. They have strong tailwinds with the baby boomer demographic.

The stock has been really driven as of late as it got added to the small cap index. It may be a little ahead of itself. They just raised the dividend 30% last week. It is very well managed and if you are a long term investor you could hold it for many years to come. Short term investors should take profits now.

In mobility aids and aging demographics, and seems to be executing on all cylinders at this time. They increased the dividend and their earnings continue to go up. Valuation is getting a little expensive for him.

(A Top Pick June 18/15. Up 42.79%.) They have been growing organically and through acquisitions. Their big focus is supplying homes with stair lifts, elevators, and other equipment to help accessibility and mobility. A big part of their business is van conversions. Demographics are really going in their favour. They manufacture in China and assemble in Brampton and Lavalle Québec. Have been growing their dividend. Sees a tremendous future for them to really grow North American wide. More and more of their sales are in the US.

(A Top Pick March 3/16. Up 37.58%.) He still likes this. They are involved in accessibility equipment such as stair lifts, etc. This is a demographic tailwind in that people want to stay in their houses longer. Recently acquired the automotive division of the Shoppers Home Health Care which builds on their van conversion business. They also did a $20 million financing for purposes of future growth. Thinks that they have a few acquisitions in their back pocket they are thinking about. When that happens, they will be back on the growth track. Still a Buy.

Basically in lifts such as elevators, retrofitting vans for wheelchair assess ability. Management owns a very large part. Have continued to show both top line and margin expansion growth. A lot of their competitors have left the elevator space for smaller buildings. This gives them better pricing power. A very supportive and aligned management team.

Manufactures mobility assist devices. Just reported great numbers in the 30% range in terms of growth. Great balance sheet. Insiders own about 45%. Nice margins and nice demographics. 10,000 people turn 65 every day, and they are playing right into that market, so the outlook is pretty good. Dividend yield of 2.5%.

Produces and sells accessibility equipment such as stair lifts, chairlifts, elevators for the home. Riding a great demographic tailwind. You have the baby boomer demographics which is living longer and healthier and wanting to stay in their homes. There is really high insider ownership. Also, pays a nice dividend.