Superior Plus Corp (SPB-T)

He's looking for a good entry point. Cut dividend, which was long overdue. Now looking at more share buybacks, a good thing. Valuation is really attractive. Strong fundamentals going forward. Not a dividend play, but a good opportunity for growth. Yield is 3%.

It is hard to like a stock that has cut it dividend by 75%. Weather (milder winters) is an issue for companies involved in the heating business. Its revenue base is not growing as fast as before. The stock has done nothing for a long time. It's interesting that15% is owned by Brookfield.  Propane is a very necessary product.

Disappointing. Brookfield owns a lot of this, and he thinks they see a recovery coming. Shares are down because they are paying off a recent acquisition. Stay the course but watch the next few quarters.

SPB has been very disappointing. It has a shareholder yield of 16% (11% dividend yield, 4.4% debt paydown, and a 0.5% buyback yield). Analyst estimates have largely been trending lower, but forward earnings growth is expected to be strong, but some of this is reflected in its forward earnings multiple of 17X. It is a cyclical business, and we will be watching the earnings release next week very closely to further assess at that time our full review of the company going forward. 
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Never impressed with it. Needs to evaluate it more on the current pullback. Not an investment, but a trade at best.

Valuation probably attractive enough to add now as a value play. Seasonally, expects demand to improve. That being said, have to be careful of the high yield, as it can disappear. Can't say dividend is rock-solid. Yield is 9.5%, some risk.

Considered a utility. Q2 missed. Her analysts have it as a Hold, concerns over company's outlook. On the sidelines till more visibility on earnings growth and a change in momentum. 7/10 on value. She prefers FTS, for example. 

We think it is OK at current prices for higher-risk income. At $7.00 we would be much more interested, assuming no fundamental changes. 
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He held this for a long time until it fell out of favour and he shifted to Chemtrade.

Stock's struggling. Not one he follows, so doesn't have any insight as to why. Consistently downward trend of lower highs and lower lows, and that trend's still pretty intact. The trend is your friend (or enemy) until it ends. Broke down again yesterday. 

For recovery, you want to see it break that trend and go through $8.60. 

Analysts suddenly wrote them down, based on their earnings, though it's probably temporary. Not proud to hold this. 

Propane distribution is a mature business and is like a utility. You can buy for the dividend of 8.7% but not for earnings growth.

We think the current valuation looks reasonable to us. SPB’s EV/EBITDA is around 8.0x, at the lower end of historical averages. SPB’s debt level is 3.9x, quite high but on par with industry averages and gradually declining. We don’t think the dividend would be at risk for now (although things could change in the future). According to the Annual Information Circular, Brookfield owns 260,000 Preferred shares, each preferred is exchangeable to 115.4 common shares, Brookfield also owns 6,696,500 common shares. Assuming the exchange, Brookfield would own 13.2% of SPB, there is a possibility for a privatization deal, but the probability is uncertain. The business is tough to consistently create shareholder value given the cyclicality, capital intensity and high leverage level. That being said, despite tough execution, the business would have tremendous runway in terms of staying power. Brookfield likes 'recurring' revenue and that is certainly an attractive here. We think $8.50 would be an attractive entry point, but with its small size and leverage investors should consider it a higher-risk stock overall. 
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Doesn't own shares, but likes company. Assets are very strong. Simple business model which is good for shareholders. Recent M&A helping with cash flow. Would recommend buying. 

There was a downtrend (lower highs and lows), now consolidating (lows are in line with each other). Could break out, break down, or keep consolidating. If you own it, hold. If you want to buy, wait for breakout. 5/10, not a disaster, but not appealing.