Ravi SoodXS Cargo Income FundXSC.UN.VTOP PICKFeb 10, 2006
(A Top Pick Dec 9/05. Up 4%.) A real growth opportunity. Have the potential to have 70 Cargo stores across Canada. The profitability of these stores is staggering. Incredibly high sales per square foot. Would still buy. 50% of it is owned by management. Extremely high ROE.
Interesting turnaround play. Got itself into some trouble a couple of years ago and thinks there is still some room to run in this one. Good management. Coming up on his radar screen now.
He tends to stay away from retail. Too dependent on weather and consumer tastes. Doesn't think it's a great business for an income trust for the long-term.
(A Top Pick Feb 10/06. Down 2.4%.) Continuing to open new stores. This is a growth story. Ended up 2005 with 24 stores. Saturation point in Canada is about 70 stores.
(A Top Pick Oct 14/05. Down 3%.) Tremendous growth opportunities in their distributable cash flows, going from current $1 per unit to $1.40 by the end of ‘06 and maybe $1.80 exiting ’07.
Very tightly held management which owns 50% of the company. Not widely followed. Feels there's tremendous growth embedded in the company. Distribution of $1 a share which is expected to grow to $1.40 in '06 and $1.80 by '07.