People Corp. (PEO-X)

They are successful at making smaller acquisitions and they provide great service to their customers. Insiders own a lot of the stock. They have consistently made strong earnings and the company continues to do well. Their end-game is likely to become acquired by a larger fish. It is not cheap at these levels. He would continue to own it for another 3-5 years, if you hold it now.

An HR company that outscources third-party admin of benefits for companies. They also sell insurance. They are growing by acquisition in both businesses. They've spent $80 million since 2015 in acquisitions. But the best thing is they cross-sell different products within their divisions. They are growing organically and putting up some great numbers. Attactive valuation. (Analysts' price target $8.88)

A big provider of group benefits, focused on small and medium-sized businesses. A good free cash flow business. Earnings will never particularly look good on gap accounting, but the cash generation is very real. The niche they have carved out for themselves is quite good. The macro space is very positive. Very capable management.

It ranks okay in the model. He likes what they are doing. Earnings are going up and they surprised last quarter to the upside. It has a steep PE, but against a 15% ROE it looks attractive. Management knows what they are doing.

An employee benefits consulting company. It does not require a lot of capital. They have made some nice tuck in acquisitions. It is up 40-60%+ in the in the past year. He sees it as an acquisition target. It is thinly traded, but now more investors will start to pay attention to it because of its increased market cap. It is one of his favourite stocks.