Extended Stay America (STAY-N)

He still likes this name. It has performed well over time. They are selling some properties to build the attractive portion of the business. You get a fair build in the business. It is attractive but not a Top Pick today.

(A Top Pick Sept 7/16. Up 39.45%.) They were getting out of their long-extended renovation process, and were able to take all the money, and effectively de-lever and return it to shareholders, and the stock was very cheap. Has sold some of his position.

(Top Pick Sep 7/16, Up 14.29%) They are coming to the end of a very important refresh of their business. Cap-X will be coming down over the next couple of years and now they can repurchase shares.

This is for people who may be doing a work placement where they will stay for weeks or months, not your typical stay for a night or 2. A simple but effective model centred on providing value to budget focused leisure and business travellers. They are about to wrap up a very large CapX program. As that winds down, they will have very refreshed properties. Also, the amount they are spending comes down to free cash flow growth significantly, much of which is going to be returned to shareholders through dividends and buybacks. Dividend yield of 5.34%.