David Baskin Toromont Industries TIH-T COMMENT Jul 10, 2023

There is not great growth in the industry of heavy equipment but it has good management making good acquisitions. It is less exposed to the commodity cycle than Finning. He likes it but doesn't own it.

Eastern Canada Caterpillar dealer.
Very strong company.
Used to own shares in company.
Valuation full at the moment.
Wait for shares to fall before buying. 

It's been stuck in consolidation for 3 years, failing to break above $110 a few times. If it falls back to $100, it could be worth a trade. Otherwise, he's cool towards it.

The structural backdrop includes a lot of spending on construction and on US manufacturing facilities. Much better supply/demand for energy and materials than we've had in a decade. These are all customers of FTT.

If you look at the performance of CAT, FTT and TIH over the last year, all look very attractive. TIH does more construction, whereas FTT does more materials and so he'd lean more toward that one.

Chart appears to be range bound. Would recommend a small position, or watching for leg ups. 

Great compounder over the last decade, when they benefited from growth in the Ontario economy. Seeing softness in the space. Park in your portfolio and hold it for the long term. Does trade at a higher multiple. 

Will always depend on east of Manitoba, as that's where their businesses are. Makes money on both rental sales and maintenance, so $$ comes in at a regular pace. Recent acquisition in southwestern Ontario, but additional ones will be difficult because they dominate eastern Canada.

Likes that they generate so much FCF, they can just buy back shares, increase dividend, or go private. Virtually no debt, a few BBB bonds outstanding.

Great company. Looking at the 5- or 10-year chart, just chugs along from bottom left up to the right. If you own a partial position, definitely think about adding. Dividend's grown significantly over time by ~12% per year for 5 years. High quality, very well run.

Cash is building up on balance sheet, so he expects an acquisition over next 1-2 years. They have refrigeration technology, and solid penetration in Eastern Canada, so have to see what the next leg of the stool might be.

Reasonably well-tied to commercial construction. Fantastic job dealing with uncertainties. Likes the business and management team. A bit too big for him, as it's about to exit "SmallCapLand". If you own, decent time to add.