TFI International Inc (TFII.TO)

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.

Ranks barely in the top quarter of his Quant model. Year over year earnings growth were up 27% in the coming quarter. 15.6X PE against the 21% earnings growth. Assuming that the economic outlook for 2015 continues to be robust, this looks like a reasonable bet.

Thinks the current pullback is viable. You are getting a little more economic sensitivity, but you have a higher ability to grow the dividend. Management is very acquisitive and putting together a very good portfolio. Good management team. If the economy continues to grow, this company should do well.

Doesn’t see a dividend increase. Moved money to rail operators in the US east. Struggle with energy business. Want to grow by acquisition. Doesn’t see capital appreciation potential.

This still has room to grow. Had a bit of a pull back and this is a good buying opportunity. Well-run.

They came up with horrible earnings a month ago. They picked up Clark and Vitran. It was weather related. They are bullish on what they are doing. He would be a buyer. Load up the trunk.