CCL Industries (B)

Performance has been disappointing, though it was home run before 2017 But managers are brilliant, making fine acquisitions. 2019 headwinds (i.e. tariffs) may be done this year as the economy improves. But it has grown its earnings and dividends--that rose expectations, which weren't met. Because of the managers, he is buying more.

Long-term in a non-registered account One of the better return-on-capital companies in Canada, and historically a strong performer. They've done well diversifying internationally. But CCL will get hit over fears of global growth. Also, a recent bad earnings report hurt the stock. Long-term, this is good to buy, now when the price is depressed.

Support at $53, resistance around $67. Now, it's near that bottom. You can trade within this range. Not a buy-and-hold.

$52 is the level to step in. Don't buy now. This will re-test $52. Reduce exposure if it falls below $48.

(A Top Pick May 07/19, Up 3%) They were serial earnings beaters with positive surprises, but they recently stumbled with an acquisition and resin pricing has created volatility. They are getting back on track. Given the macro picture, they aren't buying as much as they usual do. He's hanging onto this, expecting strong earnings beats, and they have a lot of cash to make those buys.

(A Top Pick May 07/19, Up 0.1%) Fixed resin issue, and had a blowout quarter. Macro uncertainty has had an impact. Checked back organic growth based on economic environment. Would be optimistic on the name if we get a phase 1 trade deal.

He used to own them for a long time, but later they ran into various headwinds and disappointed. They steadily grew, then volatility set in a few years ago. That volatility triggered his sell. He hasn't looked at it lately.

The label manufacturer with a nice run over a multi-year period. Lately, it’s been treading low. If it goes below $55, he would sell. He expects it to go higher in the next 6 months. (Analysts’ price target is $69.75)

CCL vs. Intertape Polymer $54.97 is his model price; the stock is near this price. He hasn't looked at Intertape in years; $19.17 is his model price. He likes both. Don't sell one to buy the other. Doesn't prefer either.

(A Top Pick Feb 27/19, Down 4%) Good to hold long term. It's the first time in a long time we've had wobbly earnings. The packaging space has been beaten hard, but now CCL can make some acquisitions given lower valuations. He's confident that CCL will come back.

CCL vs 3M MMM-N has a lot of pollution liability and is facing large lawsuits for ground water polluting. CCL.B-T is a disciplined acquirer, making labels and packaging. He thinks CCL.B-T maybe oversold and would come back. He would favour it over MMM-N.

He's sold and bought it back. It has gotten way ahead of itself, then pulled back a lot. There are rumours the company will be sold; the board must decide on its direction. Well-managed and a global player.

It's performed well the past 10 years, expanding from their core packaging business, but he's concerned about them growing from acquisition. Recent quarters have disappointed and the stock was punished. The stock isn't cheap and it carries debt.

They missed earnings recently and have a high valuation, so they're getting punished. Managers are good, so maybe this is a one-time stumble. See if they can turn things around in the next quarter. It's an acquisition machine, so CCL needs to do that to bolster revenue growth.

This is a cash flow machine. They take on debt, take on an acquisition, pay down the debt and repeat. In the short run, they are sensitive to commodity prices. If you think the global economy is okay and consumer spending is okay, then this is a great company. It is not a heavily traded stock, but he would buy it here.