Cargojet Inc (CJT-T)

Favoring industrial side of economy. Expecting strength through the rest of the year. Trend during from down to up. Expecting a share price of $160. Would recommend buying. 

Good company, but trades aggressively. Right now, chart looks pretty bullish. If it gets through its old resistance level of around $140 from 2022, it will have other levels to try to break through.

Choppy business, considerable earnings volatility. Recent contract with Temu in e-commerce sector, improves growth profile. Profitability below industry average, more debt than he wants. 45x trailing PE, 30x forward PE, but the market only trades at 15.3x. Yield is less than 1%.

More interesting if drops to less than $100 a share.

Moving up the rankings of RSI in Canada. One to take a look at.

Wonderful CEO. Very capital intensive, at whims of economy. He believes there's going to be a major downshift in Canadian economy, so its business is going to ebb to downside over next 18-24 months. No value here.

He likes the business and its dominant market position. He hasn't owned it because of its premium valuation. His favourite in the sector is TIF International (TFII-T), a trucking business which gives much higher returns and may be broken into two parts.

Still has a monopoly for overnight delivery. Bloom's off the rose as growth has slowed tremendously. Cancelled plane orders. Fairly valued now, range bound. Doesn't see catalysts for a return to former highs. Off lows, stabilized.

He feels pretty positive about the stock - it has had a nice bounce but is still cheap. E-commerce is still growing in Canada and Cargojet does all the overnight shipping. He expects higher free cash flow and lower debt.

It has good forward guidance with 25% earnings growth predicted. It is technically a little overbought so it may pull back $10 to $15.

Would not invest in company right now. Good company, but very capital intensive & if there is economic slowdown - will not be good for business. Does not own shares. Better options for investors in the markets. 

Come off since Covid, but has now had a nice pop. Founder is well respected. Relies on freight and deliveries. In a potentially slowing economy, less volume demand. A recession would definitely impact it, similar to a FDX.

Chart indicating strength. Nice break in down trend. Good business to hold. Would advise picking a stock price target to sell or buy. 

CargoJet boasts a cheaper valuation and has a decent growth profile. Shares have plunged a lot this year.

There is little or no risk with solid long-term contracts with large companies like Amazon. It is managing costs well but volumes are weaker. It has good management along with good margins. It trades at 7X EBITDA which is the best price in a long time. He sold it as a tax loss but plans to buy back later in the year.

He likes it and there is an opportunity to start buying it with the pullback. A sustained high energy valuation could be a headwind.