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TSE:TFII
Has had a very difficult year as all of the logistics (trucking) companies have had. This one had a 58% increase in growth last year. Lots of money to cover the 2.93% dividend. Will probably do some share buybacks as well as some acquisitions along the way. You might also want to look at their convertible debenture.
Not growing organically right now but had much better than expected 2nd quarter margins on better-than-expected restructuring. Thinks this can drive earnings for the next couple of quarters maybe. Trading at a fair valuation. Whether you Buy depends on your view of whether they can continue to grow by acquisition. Have done a great job buying and synergistically wrapping them in. Try to buy at $16.85.
Went from having about 40% of the revenues coming from specialty services, packaging and couriering to being over 60%. They are higher margin businesses and deserve a higher multiple but that multiple has not come through yet. Good execution by management over the last few quarters. Increased margins and paying down debt. $19-$20 in 12 months easily. 3% dividend.
(Top Pick Sep 26/12, Up 6.58%)