Recently acquired Wild Flavorings, food additives, but the acquisition didn’t really do much. With the global weather and the droughts, food and grain prices are up and down. This kind of company is not universally liked, but the product they sell and make, will continue to do well over time. Over the long run, you are going to see more names like this, and he could definitely see holding a position in this company.
He is pretty positive on this company. Made a big acquisition in Utah a few years ago, which he thinks is going to play out for them quite well. The biggest knock against this company is that they continued to issue stock frequently, but not so much lately. Pays a good yield. There are worse companies that you could own in the energy space.
If you are going to be in this space, this would be the one you want to be in. These companies have such a big infrastructure that it is hard to find a fault. The biggest scare is for merchant fees to come down and/or alternative payment systems. Thinks this infrastructure will continue for a long time. Not cheap. Multiples are way above market multiples, and if they did stumble, this would have a material impact on the stock.
If rates go up, these are utility type companies, and would be interest-rate sensitive. Likes this one. Has better growth prospects than other pipeline companies. Have a huge amount of growth coming on between now and the end of 2015. Really focused on growing the oil sands side of the business. Positive on the name, but you want to be careful getting into it after the run it has had.
Projecting to have $20 per-share earnings growth by 2015. A lot of that is coming from share buybacks. The transition from hardware to software over the past couple of decades, has been wonderful. This is more of a trader, which you can trade around a bit. If you hold it, you might be able to get a better price for it as it trades up, but if you don’t you can wait until it comes off a little bit.
With more online shopping and fewer malls in the US, what is the impact on this company? Thinks it would have an effect longer-term, but short-term doesn’t think it will have a disastrous effect. Have been doing mixed residential where they have a condo tower over stores. Even if rates creep up a little bit, you should still be okay. A good name.