Darren Sissons Stewart Enterprises Inc STEI-Q DON'T BUY Feb 13, 2013

Funerals should be a very stable business. Tons of recurring revenue and good demographics. However, looking at the industry, this has not been the case. It’s a unionized business, dominated by mom and pop stores. Balance sheet on this one is a little rough. Doesn’t have the stability that he wants.

Darren Sissons

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COMMENT

He owns both Stewart Enterprises (STEI-Q) and Service Enterprises (SCI-N). They're both in the funeral sector. Service has hit his target, but he has not sold yet to see if it will run further. Pretty much recession proof. Think they both have a ways to run.

BUY

Both Service Corp (SCI-N) and Stewart Enterprises (STEI-N) are dominant leaders in the funeral industry. Quite a bit of debt. Could have chosen either of these as Top Picks.

TOP PICK

Funeral business. People are still going to want their funerals. Shrinkage in margins because of cremation. But this is a necessity. Just reported reasonable numbers. Not keen on de3bt load

PAST TOP PICK

(A Top Pick May 1/09. Up 87%.) 2nd largest funeral home operators in the US. Recession proof.

TOP PICK

2nd largest funeral and cemetery company in the US. The 2 certainties in life are death and taxes. Demographic changes in the next 15-20 years are going to be very positive. Possibility that their largest competitor may try to buy them again in the next 6-12 months.

COMMENT

Funeral home company. He has 2.6% of shares and is in controversy about strategic alternatives including selling the company, significant dividend increase or share buyback, with management.

PAST TOP PICK

(A Top Pick Aug 9/11. Up 32.69%.) 2nd largest public funeral and cemetery business in the US. Likes the long-term attributes of this one.

HOLD

Death care industry. The oldest company he has by about 3 years. Pays a dividend. Recent results were excellent and they keep raising the dividend yearly. Debt is high but normal in this industry. Would not buy it now although there is still a lot of upside.

BUY

Funerals and cemeteries. Has done a really good job of cutting costs in the last year. Increased their dividend and have been buying back stocks. Near-term outlook is very good. Logical acquisition candidate.

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Darren Sissons Stewart Enterprises Inc STEI-Q DON'T BUY Feb 13, 2013

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