Firstservice Corp

FSV-T

A residential property manager. They first bought a restoration company. They are great acquirers of companies that can stand the test of time. (Analysts’ price target is $131.91)

The chart looks good. It's had a good run and is now pulling back, which is healthy. But it's healthy to hold this level--you can buy it now.

A capital-lite business with few fixed assets and low capex as they generate a lot of cash. But recently they missed their EBITDA by 5%, largely from their restoration business. They grow by acquisition as well as organically. Managers own a lot of shares. It's a buying opportunity now after that earning miss. (Analysts’ price target is $131.91)

It's done very well. He knows the CEO. It was fully valued until the recent pullback. Their businesses are recession-proof, but the multiple has grown high.

(A Top Pick Oct 11/18, Up 35%) They're big in the US and also here. Their strategy has always been to grown organic while doing tuck-in acquisitions. They execute very well. Strong managers. But not a cheap stock. They can keep expanding; lots of mom-and-pop shops they can buy in the future. Great CEO.

Reason debt went up is they made a gigantic acquisition, Global Restoration, which benefits from hurricanes and other disasters. Loves the stock. Unbelievable chart. Don't be so quick to sell good companies.

(A Top Pick Aug 30/18, Up 23%) Love it. Great Canadian company. Manage condo properties. Can continue to do acquisitions, and continues to grow organically. Lots of room to grow. Great formula, execute incredibly well. Have a vision. Will continue to do well.

(A Top Pick Jul 19/18, Up 26%) Love it, a great Canadian company. Their property management business is doing very well. They plan to grown organically and make some small acquisitions of mom-and-pop operations. It's very well-run.

(A Top Pick Jun 07/18, Up 24%) A Canadian company but most of its businesses are in the U.S. Great story. Very low capex. Owned it for a long time. Management owns almost 40% of the stock. Continues to own it, they buy it here.

(A Top Pick Apr 26/18, Up 31%) Also a top pick today, so details there. Good managers and type of business.

Also a past pick. Trades at 20x earnings, so not cheap. Waht he likes is that it has no capex per se. Last quarter they grew their topline 13%, impressive. They target organic and acqusition growth from mom and pop shops out there, so there's lots of runway here. (Analysts’ price target is $113.46)

It provides a huge range of services for gated communities. It's a compounder of capital and market leader, but occupies only 5% of this sector, so there's room to grow. It has a high PE, but their runway to buy other companies is long and broad. (Analysts’ price target is $113.46)

(A Top Pick Feb 12/18, Up 37%) A great Canadian business with American assets like California Closets. smartly, they make small tuck-in acqusitions that grow the business. Also, their property management business is an annuity because clients sig 3/4/5-year contracts that see inflationaty increases. They have no fixed assets, so they're capital-lite. Managers own a lot of stock. Strong managers. They're the biggest in their sector.

(A Top Pick Jan 09/18, Up 11%) A lot of the gain is from currency. Mostly a US company. Recurring revenues. Thesis is there's a long runway of growth, they have the scale and the buying power to serve condos. Not cheap, but he likes it because of the growth.