Ravi Sood
XS Cargo Income Fund
XSC.UN-X
PAST TOP PICK
May 26, 2006
(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 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.
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.
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.