Ritchie Bros Auctioneers Inc. (RBA-T)

Amazing success story. Auctions heavy equipment. Takes fees, not much credit risk. The world's recovering, and industrials are booming. Multiple is expensive, but deserved. His preferred way to play is through CPRT. Sees only tailwinds, no headwinds, going forward.

Pays a modest dividend. Stock has performed well. The auction business is performing well, while a good economy is helping them.

He hasn’t done a seasonal analysis on this one. But right now he would like to see this broken down trend. If it keeps going down, why trying to catch a falling knife. You want to see the stock moving sideways preferably and then ask yourself what is the point to get in. Something else is going, on. This stock should have done better this year.

This has been performing like a champ. There has been quite a lot of equipment auctioned off over the last couple of years in Western Canada. It has run up a lot, so it could check back, but there is no reason not to be interested in this company.

(A Top Pick Sept 8/15. Up 30.34%.) Interesting in that up until a few days ago, he probably would have been down. One of the leading auction houses for industrial equipment. They just did a large transaction where they are buying an online auction house for $750 million, and financing it primarily with debt and cash on hand.

(Market Call Minute) He needs to do more work on it.

Because of the uniqueness of the company, it has always been very expensive. This goes with cycles when there is used equipment on the market and there are liquidations, etc. Growing globally, and Canada is just a small part of their operations. Wait for a significant miss or earnings warning before buying this.

(A Top Pick May 14/15. Up 3.6%.) A little expensive on a PE and Price to Book basis, but has very little debt. Really good free cash flow. Dividend yield of around 2.6%.

The issue here is really the volumes and the used equipment pricing for most of their heavy equipment they sell. Expects there is further pressure for their volumes to come down. He is Short this, mostly to hedge off some of his Long positions. Thinks the stock is near the top in its valuations and he is looking for a 10% drop.

(A Top Pick Sept 8/15. Down 9.87%.) Hasn’t worked out as well, but is still one of his largest holdings in 2 of his funds. Ironically, as markets get harder, auctioneers’ volumes of resales actually pick up. Great balance sheet with no net debt. Score in the top 10% for him on valuation.

(A Top Pick May 14/15. Down 6. 76 %.) This is still a Buy. Has a free cash flow to enterprise value of over 11%. Very low debt level and a healthy dividend.

(Market Call Minute) He is watching it. It is a good business and will benefit from a weaker or stronger economy.

They do a lot of auctions of mining and forestry equipment. Scores high on price momentum and valuation. They beat on their last quarter. The balance sheet is in great shape. A little expensive on a free cash flow basis. The downturns in the industrial sector can actually be good for this company. Dividend yield of 2.4%.

(A Top Pick May 14/15. Down 0.14%.) This still rates very well in his ranking and still looks like very good value. Has decent free cash flow of about 6%. They are earning lots of money to cover their interest payments.

They sell multimillion dollar items. It is a bit expensive on a PE basis. A clean balance sheet and small debt to equity ratio. They cover their interest by about 25 times. They have had significant earnings announcement surprises to the upside.