TFI International Inc (TFII.TO)

Technically this is not looking too good. It is in a downward trend and is underperforming the TSE Composite and currently trading below its 20 day moving average. This is not an attractive opportunity technically. It has long term support at around $22, and we are not too far off of that. Wait for it to test around the $22 level and show signs of bottoming.

They have expanded and done very, very well in terms of their fleet acquisition. He is not all that enthusiastic about transport, particularly in Canada. One of the things that should be positively affecting them is the cost of diesel, which has been a big wind at their back. This has not affected their stock price as much as he had expected. He would want this to be a lot cheaper before he looked at it. Such as 5X EBITDA. Their core operating profit has been out West which is going to get hurt.

Mostly East West business, but some North South. It was sold off because of Alberta and a lack of pickup in manufacturing in Ontario. They acquired a number of companies and have become the premier trucking company in Canada. It is cheap, down about 14% and you can buy it while it is down.

Continues to buy this for new clients. Has pulled back meaningfully from the beginning of the year. They always have a lousy 1^st quarter, weather related. Sees them selling off their waste division and looking to split the company into 2 or 3 parts. That could realize value. Recently got contracts with Google and Amazon for same day delivery in New York and some Canadian cities. Generates a lot of free cash flow, which is being used right now to buy back stock.

This has a pretty good upward trend. Broke a little bit of support recently, but wouldn’t be too concerned until it broke the low of later 2014. Pays a reasonable dividend. Looks like the easy money has been made. Yield of 2.6%.

Transportation actually starts to fall off at this time of year. He would not be stepping into this during the summertime. Transportation will come back in the October time frame. It is actually a possible short in the summertime as it gets quite weak.

(A Top Pick Feb 5/2014. Up 24.93%.) Had a lousy year last year because of bad weather, which provided a couple of opportunities to buy the stock. Last year this was trading at a 10% free cash flow yield. Companies that generate massive free cash flows, provide wonderful opportunities. Still loves this.

On transportation companies, either trucks or rails, there are fuel surcharges. Lower oil prices will stimulate the economy. This company is a very large, diverse trucking firm. One of the growth areas is the packaging/courier business. This company has some partnerships with Google, and he thinks this will grow over time with the continued growth of e-commerce. You also get the benefit of a spin out sometime this year of their truckload business. Over time, they could also sell/dispose of their waste management division. These are key catalysts. Extremely well-run.

This company has been consolidating the “less than truckload” trucking industry. When you buy your competitors, there is always a little question about digesting them and merging the cultures, but over time you should be able to become more efficient and be able to increase your margins. Lower fuel prices are a huge benefit for the trucking companies, not just because of the cost saving, but allowing them to become more competitive with the railways. Dividend yield of 2.34%.

Transportation Sector. Loves the sector a lot. They bought 3 other companies. Likes this one a lot and thinks it is going higher. Alternatively you could get FDX-N in the US.

(A Top Pick Feb 5/14. Up 25.99%.) Had a very lousy 1^st and 2^nd quarter in 2014. The ice storm really affected their business. With Canada Post possibly dropping out next year, this will have a bigger market share. He plans to hold this one for a long time.

Have developed a pretty solid track record for showing they can identify good acquisitions and integrating them. Because of that it has a very good growth profile. Has been looking at this. Looking out to 2015-2016, he feels fairly confident they can keep a pretty good growth profile. The stock is not that expensive in that context. A good candidate to own for 2-3 years. 2% dividend yield.

(Top Pick Oct 30/13, Up 31.16%) They are good at acquiring businesses and keep the business going. They got into waste management also. Going forward they need to reduce their debt. They need to use the free cash flow to pay down debt.

Recently made a big acquisition. They are basically consolidating the industry, which he is very supportive of.

Trucking, but diversified into shipping, packaging, waste hauling and waste management. Just made an acquisition. Chart goes straight up. Lovely numbers from FedEx the other day and no reason this one should not follow suit. There is a bit of a trading opportunity right here.