Superior Plus Corp (SPB.TO)

(Top Pick Jan 24/13, 5.28%) Pretty good dividend. He recently bought more. Recently had a setback that will delay some growth. He would still own this. Dividend is safe. Could see dividend move up in 24 months.

Likes this company. For the past $3-$4 gain, people have been worried about this company’s debt, dividend and the economic situation but quarter after quarter, they just put up the numbers. Cash flow is very strong. Dividend could be raised if they wanted. Pretty solid name.

Pull back is about “the herd” and is not stock specific. With their margins improving, their comp annual growth rate over the next couple of years and reduced leverage, there is a good shot they can increase their dividends up to 50% over the next 3 years. They say they can grow their business 7% -10% over the next few years. Margins are improving. Payout ratio is safe. 5.4% dividend yield.

(Market Call Minute.) Has a central value of about $12 and has been trading either side of this. Could be bought, but only for a small bounce.

Debentures (SPG.DB.G) maturing Oct 31/16 and callable Oct 31/14. Should I Sell, convert to common shares or hold to maturity? All convertibles seem to be very expensive these days so you should look at converting them. (You can email him at [email protected])

Stock has been on a real tear. On a “sum of its parts” basis, he thinks it is worth $13 so has more upside. Feels investors are responding to their improving balance sheet, a more sustainable dividend, higher propane prices and higher US demand for propane. Market also likes their 2 other businesses. 4.8% yield.

Good dividend while you wait. Have a tight window between when they buy and sell the propane.

(Market Call Minute.) Had a nice run and recovery. New management which has really turned it around. He owns the convertible debentures.

Had problems for a long time, but a new CEO came in and it is really a turnaround story. Wasn’t very well run and there is a lot of low hanging fruit, doing things better and focusing on customer service. Could see it north of $10 in 12 months. 6.5% dividend yield.

Propane is the main business but also has pulp and paper chemicals. Stock took a big hit when distributions were cut. Has had a bit of a renaissance lately. Thinks their core businesses are improving. 6.5% yield. Thinks it is worth holding onto as better times are ahead for them.