Stephen Takacsy, B. Eng, MBA Student Transport of America Ltd. STB-T HOLD Mar 22, 2017

School bus business. Not a high growth business. Very well managed, but not a high moving stock.

(Market Call Minute.) They just had a great quarter and a great number, and the stock is probably trading a little ahead of itself. Have been growing their contract revenues. Not a bad story for income oriented investors.

The last quarter was better than he expected. ROC improved, but that is just not enough. Dividend yield of about 7.5% is very tempting, but almost too good to be true. Expects they are paying out too much. He would like them to reduce the dividend and pay down some of their debt, which would make it more interesting.

A higher risk, more liquid name. He sees a 60% payout ratio, so the dividend is safe for now. Trading within its 5-year range, and that is usually pretty good. Debt levels are not low, but are not terrible. He expects some sales growth over the next couple of years. Q1 is usually a weak quarter, but this time it was a beat.

They have a cozy little business. He sees 7% revenue growth from new contract wins. They had decent cost cuts and so be models 20% EPS growth. It is not cheap and it is a small cap so it is good until it is not good. It looks good now, but don’t make it a huge part of your portfolio. You have to keep an eye on it.

A cozy little company with a nice 8% dividend yield, which is covered pretty well with a 60% payout ratio. He is looking at 7% revenue growth on contract wins next year, combined with some cost cuts. The only problem is, it is trading a little above its 5-year average right now. He would wait for a bit of a pullback.

This basically operates school buses in the US. It has a fair bit of debt on its balance sheet, and has not grown that quickly. The valuation is certainly not cheap. He would avoid this at these levels.

They are good at renewing their contracts. It won’t make him rich, but it pays a decent dividend. You are okay to hold this for income.

It has an attractive dividend. A high quality school bus operator. He does not own it because on a share basis the business has not grown due to share issuing. That could change as they get into a managed services business. He is waiting for per share growth to start to tick up.