Exchange Income (EIF-T)

We can't make short term predictions with any degree of accuracy, but EIF rose 8% with the November rally (plus a 21c dividend). It also just raised its dividend 4.8%. Much of course will depend here, and it will follow the market, but it is not typically the type of stock that 'spikes' higher. We would be OK with a tax loss/rebuy strategy with AD.UN as a short term proxy. 
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EPS of $1.09 missed expectations of $1.19 and revenues of $687.67M beat estimates of $660.45M. Revenue increased by 17% and Adjusted EBITDA grew by 12%. Its free cash flow was a record $117M, but net earnings per share declined due to the bought deal capital raised in Q2. Its bought deal offering is aimed at financing future growth capital expenditures, and its acquisitions have so far been deemed to be accretive. EIF raised its dividend by $0.12 to a new level of $2.64 per share. Most metrics were quite strong, except when looking at a per share basis, which highlights its rising share count. Management provided guidance of Adjusted EBITDA between $600M and $635M in 2024, with further growth anticipated in 2025 as contracts mature. 

Overall, the company continues to grow its dividends, and while the earnings miss has not been well-received by investors, we think its business is heading in the right direction and it continues to make value-add acquisitions. We consider it buyable and continue to like the stock for higher-risk income and growth. 
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Leader in Canadian aerospace, interesting manufacturing. Aerospace is in niche markets, without much competition. Medivac, pilot schools, government contracts for maritime surveillance. Expects huge revenue and profit growth when contracts renew in 2025. Yield is 5.44%, dividend should grow.

Surprised that share price is lower. Very successful in recent company performance. Great company with great management team. Will continue to hold. 

Solid, double-digit EBITDA growth on latest results. Raising dividend soon, 47% payout ratio. Trades below its 5-year average. Raised guidance. Problems are that there are a lot of cheap stocks out there and its balance sheet. Trades at 11x earnings, with 16% EPS growth.

The chart is struggling to consolidate. You don't want to see it fall below the previous low (and currently) of $50. But if it breaks upwards, you buy it.

Diversified industrial company. 
Wellington-Altus a major shareholder.
Strong dividend payout with good share price performance. 
Concern: bought deals during high share price environments. 
Wait to buy when shares fall to $40 range. 

Doesn't own it because it lacks a clear strategy, though they buy profitable businesses well. Can they sustain that? Appears to, based on their track record. He prefers safer investments with strong assets. He continues to watch this, maybe buy on dips.

Likes CEO and management. Accretive acquisitions, to which it brings capital and expertise. Really consistent. Dividend has grown 5% annually for 19 years. Returned just south of 20% annually during that time. Repeatable business model. Recent $172M equity financing. Recent big contracts from BC government and AC. About $1B in liquidity to fund the next opportunity. Yield is 4.88%.

It invests in aviation and pays a good dividend of 4.8%. It is good to hold for the long term. You could buy above $56 since it should go much higher.

In another base. Nothing wrong with the chart. A good stock to hold and collect the dividend. Boring, safe-looking chart. He wants to own safer stuff like this right now.

Does not own shares.
Strong Canadian company within aerospace sector.
Share prices have been excellent over past 5 years.

Executed very well. Recent acquisition looks accretive. Defensive cashflows, nice dividend. Reasonable valuation at 11x 2024 earnings, with 10% growth rate. Still room for upside.

EIF is a grab-bag of companies and it grows by buying companies. he just met with them. They have a great, long track record of buying companies, cash-flowing them, paying rising dividends, and he likes this. Problem is risk lies with a few top managers to buy good companies--how long can this last? Great managers. Good for you if you bought it, but too risky for him, at least for now.