Stanley Black and Decker (SWK)

This has done a phenomenal job of integrating and consolidating their hand tool business. Most of their tools are made in the US, which is going to be loved by Donald Trump. About 55% of sales are made in the US. There are 3 major divisions, hand tools, power tools and security systems. A very innovative company. Growing at about 12% per annum. Dividend yield of 1.94%. (Analysts’ price target is $131.)

(Market Call Minute.) This has good valuation and good volatility characteristics. The price momentum is also good.

(A Top Pick Jan 19/15. Up 9.91%.) This gives exposure to the new home market in the US and a little in Europe, but also to the renovators market. Very well-managed. 10% growth going forward is pretty good.

People now have disposable income and the US housing market was hit. He forecasts the renovation market to be stronger.

(A Top Pick Jan 21/14. Up 14.33%.) Besides being a housing play, they have a security system area, which has been doing quite well. A well-run company. They have been consolidating the tool business globally. Good solid balance sheet. Still likes the story very much.

(A Top Pick Nov 19/13. Up 15.6%.) Below market multiple, which he likes. Offers exposure to both the US housing market and renovations. It should benefit from the consumer spending increase that he feels is coming. Good dividend yield. Yield of 2.27%.

(A Top Pick Dec 5/13. Up 21.04%.) A housing play as well as renovation and industrial construction. They are an innovator in the tool business and own a big part of that. They continue to consolidate the tool business. Made a good European acquisition last year. Pays a good dividend.

(A Top Pick Nov 19/13. Up 20.38%.) Instead of looking at a homebuilder, he chose this one based on getting the renovation market and not exposed to the new home market.

(A Top Pick Nov 19/13. Up 10.46%.) Chose this because of the US housing market. This company really appeals to new homes and renovations. He is pretty constructive on the renovation market. This is a core brand, and they make good products.

A great way to play the recovery of the housing market and industrial construction market, not just in North America, but globally. This company is a highly innovative and highly acquisitive manufacturer of hand tools, door entry security systems, etc. Have been exceptionally successful. Good dividend of around 2.5%. Missed a quarter recently because of a slower turnaround of a European acquisition they made. Trading at around 12.5X earnings.

Big innovator in the tool business. Invest a lot of money in their business. Great track record of consolidating the tool industry and doing a very good job of it. Growing internationally. Trading at only 12X earnings. Yield of 2.51%.

Likes the exposure to the brand names of Black & Decker and Stanley Tools. Also likes the exposure to the US housing market, which is in a lot different shape than in Canada. Feels the dividend is sustainable. There is a lot of organic growth, more so in the renovation market.