Superior Plus Corp (SPB.TO)

Considered a utility. Q2 missed. Her analysts have it as a Hold, concerns over company's outlook. On the sidelines till more visibility on earnings growth and a change in momentum. 7/10 on value. She prefers FTS, for example. 

We think it is OK at current prices for higher-risk income. At $7.00 we would be much more interested, assuming no fundamental changes. 
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He held this for a long time until it fell out of favour and he shifted to Chemtrade.

Stock's struggling. Not one he follows, so doesn't have any insight as to why. Consistently downward trend of lower highs and lower lows, and that trend's still pretty intact. The trend is your friend (or enemy) until it ends. Broke down again yesterday. 

For recovery, you want to see it break that trend and go through $8.60. 

Analysts suddenly wrote them down, based on their earnings, though it's probably temporary. Not proud to hold this. 

Propane distribution is a mature business and is like a utility. You can buy for the dividend of 8.7% but not for earnings growth.

We think the current valuation looks reasonable to us. SPB’s EV/EBITDA is around 8.0x, at the lower end of historical averages. SPB’s debt level is 3.9x, quite high but on par with industry averages and gradually declining. We don’t think the dividend would be at risk for now (although things could change in the future). According to the Annual Information Circular, Brookfield owns 260,000 Preferred shares, each preferred is exchangeable to 115.4 common shares, Brookfield also owns 6,696,500 common shares. Assuming the exchange, Brookfield would own 13.2% of SPB, there is a possibility for a privatization deal, but the probability is uncertain. The business is tough to consistently create shareholder value given the cyclicality, capital intensity and high leverage level. That being said, despite tough execution, the business would have tremendous runway in terms of staying power. Brookfield likes 'recurring' revenue and that is certainly an attractive here. We think $8.50 would be an attractive entry point, but with its small size and leverage investors should consider it a higher-risk stock overall. 
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Doesn't own shares, but likes company. Assets are very strong. Simple business model which is good for shareholders. Recent M&A helping with cash flow. Would recommend buying. 

There was a downtrend (lower highs and lows), now consolidating (lows are in line with each other). Could break out, break down, or keep consolidating. If you own it, hold. If you want to buy, wait for breakout. 5/10, not a disaster, but not appealing.

Buying opportunity. Warm weather lowered demand, high leverage. Looking into a US listing. Long-term growth if it can execute and get its balance sheet down. Its acquisition recently beat by 9%. Cheap at 8x 2025 PE, with 8% growth rate. Yield is 7.6%.

Not a core position. A satellite, as it's a higher-risk play. Don't make it 30% of your portfolio, but it can add value.

It checks the boxes for what he is looking for: reasonable growth and profitability with profits being returned to shareholders through dividends and share buybacks. It has done a big acquisition and still has to chew through it. It should do $1 billion in cash flow over the next year 4 to 5 years though organic growth. Has a 7% yield.          Buy 9  Hold 2  Sell 0

Expectation is that fall season strongest time of year for business. Share price weakness not good for momentum investors. Would wait for stock bottom before buying. $10 or $11 share price a good place to buy. 

We think it is buyable for income and some growth. Results missed estimates, but it still confirmed EBITDA guidance. Based on consensus estimates. EPS is still expected to rise quite nicely in 2024. It needs to execute on this growth, but lower/peak interest rates should also help the stock, over time. 
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