Finning Int

FTT-T

TSE:FTT

19.86
0.22 (1.12%)
Finning International Inc., headquartered in Vancouver, British Columbia, Canada, is the world's largest distributor of Caterpillar products and support services.
More at Wikipedia

Analysis and Opinions about FTT-T

Signal
Opinion
Expert
COMMENT
COMMENT
September 6, 2017

Has a lot of respect for how management has turned the business around over the past number of years. Now there is more good news being priced into the business, and it is clear that it is past the worst. Now that this business bounces off the bottom, there are certain things that happen. Incremental margins are better, but free cash flow conversions actually are worse, because they now have to invest in net working capital to grow the business. He likes the company, and over the years they can do just fine, but it is not the risk/return that it was.

Show full opinionHide full opinion
Finning Int (FTT-T)
September 6, 2017

Has a lot of respect for how management has turned the business around over the past number of years. Now there is more good news being priced into the business, and it is clear that it is past the worst. Now that this business bounces off the bottom, there are certain things that happen. Incremental margins are better, but free cash flow conversions actually are worse, because they now have to invest in net working capital to grow the business. He likes the company, and over the years they can do just fine, but it is not the risk/return that it was.

TOP PICK
TOP PICK
August 30, 2017

The world’s largest Caterpillar dealer. Their largest customers are public works. Mining is their 2nd largest. Mining industry capital spend has been in a nuclear winter since 2012, and is just coming out of that. Dividend yield of 2.8% per year and they’ve grown their dividend 8% per year (Analysts’ price target is $32.)

Show full opinionHide full opinion
Finning Int (FTT-T)
August 30, 2017

The world’s largest Caterpillar dealer. Their largest customers are public works. Mining is their 2nd largest. Mining industry capital spend has been in a nuclear winter since 2012, and is just coming out of that. Dividend yield of 2.8% per year and they’ve grown their dividend 8% per year (Analysts’ price target is $32.)

WATCH
WATCH
November 14, 2016

It was down trending, formed a really nice base and now is braking out. It is a cup and handle formation. It is struggling to break out.

Show full opinionHide full opinion
Finning Int (FTT-T)
November 14, 2016

It was down trending, formed a really nice base and now is braking out. It is a cup and handle formation. It is struggling to break out.

BUY
BUY
October 18, 2016

(Market Call Minute.) Earnings have troughed here, and the market is telling you those earnings have troughed.

Show full opinionHide full opinion
Finning Int (FTT-T)
October 18, 2016

(Market Call Minute.) Earnings have troughed here, and the market is telling you those earnings have troughed.

COMMENT
COMMENT
September 7, 2016

A very well-run business, and new management has done a very good job of restructuring. The Canadian business has been optimized/right sized, the South American business has been fixed, and they are in the process of fixing the UK business. That is going to take a little time, but he believes the company is well positioned for an ultimate rebound in their end market, which is Cat equipment, tied to things like oil sands, copper ore, etc. They generate a material amount of free cash flow. Expectations off the low are a little different and has been re-rated to a degree, but in tough times are cyclical cash flow benefits. In good times there are nice incremental margins and high operating leverage, that should drive nice earnings growth should things get better. He would be comfortable with this.

Show full opinionHide full opinion
Finning Int (FTT-T)
September 7, 2016

A very well-run business, and new management has done a very good job of restructuring. The Canadian business has been optimized/right sized, the South American business has been fixed, and they are in the process of fixing the UK business. That is going to take a little time, but he believes the company is well positioned for an ultimate rebound in their end market, which is Cat equipment, tied to things like oil sands, copper ore, etc. They generate a material amount of free cash flow. Expectations off the low are a little different and has been re-rated to a degree, but in tough times are cyclical cash flow benefits. In good times there are nice incremental margins and high operating leverage, that should drive nice earnings growth should things get better. He would be comfortable with this.

WATCH
WATCH
June 10, 2016

This is in the industrials, a sector that he likes. The peak was reached in 2007, and then it failed to make a new high in 2011, which put a cap on the stock for a while. It has now digested that move. Now has a well-defined Low at the beginning of this year and thinks it is now going to correct. As the corrective period goes on, the volume increases, and as it moves higher, the volume spikes up again. Watch the volume.

Show full opinionHide full opinion
Finning Int (FTT-T)
June 10, 2016

This is in the industrials, a sector that he likes. The peak was reached in 2007, and then it failed to make a new high in 2011, which put a cap on the stock for a while. It has now digested that move. Now has a well-defined Low at the beginning of this year and thinks it is now going to correct. As the corrective period goes on, the volume increases, and as it moves higher, the volume spikes up again. Watch the volume.

DON'T BUY
DON'T BUY
June 6, 2016

They used to be a serial dividend increaser. There is not a big demand for what they sell right now.

Show full opinionHide full opinion
Finning Int (FTT-T)
June 6, 2016

They used to be a serial dividend increaser. There is not a big demand for what they sell right now.

COMMENT
COMMENT
April 20, 2016

He owns this, because it is a much higher quality way to play a lot of mining and energy in general. Think of this as being in 2 important segments, oil sands in Western Canada, and Chilean copper. Both are clearly having a very difficult time. The business generates a lot of counter cyclical cash flows, so right now when things are more difficult, they are generating more cash as they liquidate inventory. There is an underlying service component which is very attractive. Companies that take stuff out of the ground, effectively can run a machine for a long time. Eventually the machine breaks. We are at the point now where a lot of companies have been parking machines, and then they start fixing and replacing things. Eventually the market for new machines will improve. Valuation is okay.

Show full opinionHide full opinion
Finning Int (FTT-T)
April 20, 2016

He owns this, because it is a much higher quality way to play a lot of mining and energy in general. Think of this as being in 2 important segments, oil sands in Western Canada, and Chilean copper. Both are clearly having a very difficult time. The business generates a lot of counter cyclical cash flows, so right now when things are more difficult, they are generating more cash as they liquidate inventory. There is an underlying service component which is very attractive. Companies that take stuff out of the ground, effectively can run a machine for a long time. Eventually the machine breaks. We are at the point now where a lot of companies have been parking machines, and then they start fixing and replacing things. Eventually the market for new machines will improve. Valuation is okay.

WATCH
WATCH
February 29, 2016

We have seen some slowing in Western Canada for demand in the products they provide. This is probably a permanent long term squeeze on their business. The yield is relatively low. He is currently doing homework on this company.

Show full opinionHide full opinion
Finning Int (FTT-T)
February 29, 2016

We have seen some slowing in Western Canada for demand in the products they provide. This is probably a permanent long term squeeze on their business. The yield is relatively low. He is currently doing homework on this company.

DON'T BUY
DON'T BUY
February 24, 2016

(Market Call Minute.) Would probably avoid this right now. If we saw the US$ start to decline, that would be good for a company like this. In the mean time they are probably going to have a lot of wind in their face, and earnings numbers are probably not going to be very strong.

Show full opinionHide full opinion
Finning Int (FTT-T)
February 24, 2016

(Market Call Minute.) Would probably avoid this right now. If we saw the US$ start to decline, that would be good for a company like this. In the mean time they are probably going to have a lot of wind in their face, and earnings numbers are probably not going to be very strong.

COMMENT
COMMENT
November 5, 2015

This is like a “Dog of the TSX” type strategy. You can sell Puts on this and get a little bit of it, and then maybe a year from now get a little bit more. You are going to get paid your dividend. A quality name trading below its five-year average with very good metrics. Strong balance sheet and strong Return on Capital. They have buybacks. In his view, this part of the market goes lower. He doesn’t think it is going higher in the next 12 months.

Show full opinionHide full opinion
Finning Int (FTT-T)
November 5, 2015

This is like a “Dog of the TSX” type strategy. You can sell Puts on this and get a little bit of it, and then maybe a year from now get a little bit more. You are going to get paid your dividend. A quality name trading below its five-year average with very good metrics. Strong balance sheet and strong Return on Capital. They have buybacks. In his view, this part of the market goes lower. He doesn’t think it is going higher in the next 12 months.

BUY
BUY
October 8, 2015

A good company, well managed, good balance sheet. But it does not make the cut for him because he has CNR-T and it is a faster dividend grower. FFT-T will do fine with a two year horizon.

Show full opinionHide full opinion
Finning Int (FTT-T)
October 8, 2015

A good company, well managed, good balance sheet. But it does not make the cut for him because he has CNR-T and it is a faster dividend grower. FFT-T will do fine with a two year horizon.

HOLD
HOLD
October 2, 2015

Probably going to be dead money for a while. The dividend is safe and has a low payout ratio. It is cheap and is a quality name.

Show full opinionHide full opinion
Finning Int (FTT-T)
October 2, 2015

Probably going to be dead money for a while. The dividend is safe and has a low payout ratio. It is cheap and is a quality name.

HOLD
HOLD
September 25, 2015

This is the Caterpillar dealer. The stock is quite weak as a result of the commodity business, their key segment. If you own, continue to Hold, but he wouldn’t add to your holdings.

Show full opinionHide full opinion
Finning Int (FTT-T)
September 25, 2015

This is the Caterpillar dealer. The stock is quite weak as a result of the commodity business, their key segment. If you own, continue to Hold, but he wouldn’t add to your holdings.

COMMENT
COMMENT
July 21, 2015

Had it, but sold it all in Oct. The chart is showing a fishbowl with a rounded top. Thinks it will go back to the $20.00 range. It is in a space that might be a little problematic.


Show full opinionHide full opinion
Finning Int (FTT-T)
July 21, 2015

Had it, but sold it all in Oct. The chart is showing a fishbowl with a rounded top. Thinks it will go back to the $20.00 range. It is in a space that might be a little problematic.


Showing 31 to 45 of 230 entries