Savaria Corp (SIS.TO)

Constant demographic push for this stock. Tends to spike up and then consolidate. If not owned, step in by thirds. Buy 1/3 now, another 1/3 lower down, and then the final 1/3 actually higher than the first (as you know momentum is supporting you).

Last year it was hit by tariffs and has recovered quite nicely. They are focused more on Europe than the US now. They have positive growth. It's interesting and he will study it more.

Poster child for tariffs, with selling into the US when its facilities were outside. Now building elevators in a US facility. Important to note that all its products are CUSMA-compliant, and many are FDA-regulated. Fell off, has ramped back up, should continue to grow from here.

Accessibility industry. Considered a discretionary name, but she sees it as needs-based. The aging population wants  to age at home gracefully, delaying moving into a retirement home as long as possible. Poster child for tariffs, but many products are FDA-regulated (and, so, tariff exempt). 
 
Stock's now about where it was prior to April tariff announcement. Cost cutting and new products mean company can continue to grow. Own it for the long term. Yield is 2.69%.

She does own SIS, which plays on the demographic of aging at home.

Doing a really good job prior to tariffs. A lot of products are FDA-regulated and not subject to tariffs. Moved some production to the US. Needs-based products to help people age safely at home. Price increases can be passed along to customers.

It was much better last October before US tariffs happened. He doesn't expect SIS will suffer much or any tariff impact, because they are covered under USMCA and are considered medical products for the elderly. He likes the demographic trend of aging at home, especially post-pandemic. They are streamlining operations and growing margins.

Absolutely a growing market. Traded sideways for last 4-5 years. Hit pretty hard in Feb/Mar with all the tariff news because a lot of production is in Canada and China. Trying to move some production to US. Be careful. Growth decent, but not outstanding. Look elsewhere.

It fell below $20 on tariff fears. Some products may be exempt from tariffs if covered by Medicare. They've grown by acquisition, so have some exposure to the US. This is not bad at this price now to hide in. Their business is generally stable and shares are relatively cheap. Management owns lots of shares and have grown the business well. SIS is a better play than a software or oil company this size, because their business is stable. It helps they have business outside US, though input costs this year will be a worry.

Two years ago was his last meeting with the company. It was good, but not good enough. Long-term care is challenged -- government reimbursement is an issue, growth is stable but low single digits. Wouldn't buy today.

He remains a big fan of the company. They've increased margins and revenues. The tariffs have impacted shares. He isn't panicking but rather buying on weakness, including yesterday. Volatility will continue. The US makes up 33% of sales, and because SIS has a lot of manufacturing in the US so those sales should conform with the tariffs. If FDA-approved products, like elevators are exempt, that would raise the US percentage. Ultimately, SIS will navigate tariffs which won't last forever.

Good company, but not outstanding. High quality, steady eddy. Not a low multiple. You'll do well over time. More of a mature business, doesn't have the growth he likes to see.

This is how she's playing the aging demographic theme. Long-term secular trend.

Accessibility segment, plus products in the patient care segment help with the healthcare worker shortage. Margins this year have improved from 16% to 19.5%. Stock dropped due to tariff issues, and this is overdone; FDA-approved items are not subject to tariffs. US manufacturing facility can take on more production if required. Yield is 3%.

Leader in home accessibility and patient handling products. Benefits from aging demographics. Phenomenal results, increased margins. Over 18% EBITDA margins YTD. 

Stock's down on tariff threat, big overreaction. Buying opportunity. Patient handling products are all made in USA, and most home accessibility is FDA-approved (tariff exempt). Home elevator business may not be exempt, but could easily shift manufacturing to another of its 12 plants worldwide. Yield is 3%.

Benefits from the aging population that has financial flexibility. Very strong market position. Professionalizing a mom & pop industry. Really good job acquiring and integrating products. Not expensive. Well run. Has a place in a growth portfolio.

He's not avoiding companies with tariff risk, as he doesn't think tariffs will be as bad as feared.