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Had improved results in their metal service business in Q1. They are looking to sell some US operations to help fix the balance sheet. They have a good bank line, and probably have some good, long term growth, but their payout ratio is 125% 2016 (est.). They may cut their dividend in Q3 if their energy outlook does not improve. If he owned, he would be selling Calls on it. 6.5% dividend yield.
Just came out with earnings, which he didn’t think was that good. They are going to really have to prove itself with its US lending segment Laser Pro. He doesn’t expect to see colour on that until Q3. Has a really good dividend which is really well supported. Should have some good growth in their new fintech area GTBS. The growth, investors are looking for, is being held back by global financial institutions. This is a name you are going to want to pick away at.
Not the highest quality REIT, but he does like it here. 8% dividend yield and it is trading at a very reasonable valuation, 10.7X 2016. Payout ratio is at about 87%, and he sees that declining next year. 32% of its revenue stream is from the US. His problem is that it doesn’t have any growth rate over the next couple of years, due to the areas they are in.
Just announced they are going to be selling their propane business, which is 13% of their business mix. They want to focus more on infrastructure. This is probably the most commodity focused of the energy infrastructure, so it has been very volatile. From a very low base, he is modelling that their cash flow can grow 25% between 2015 and 2017. Very good balance sheet relative to other energy infrastructure names. Not a bad little play down here all things considered. It’s one you could consider selling Puts on.
This is the worst of the 5 big banks at this point. They just made a US acquisition and paid 17X, and it trades at around 11X. It is likely going to be dilutive. They are going to go from the best balance sheet, highest CET1 to the worst as a result, with no earnings per share growth for the next little bit. The stock is OK, but you can get a much better growth rate and a very similar valuation with one of the other banks. He would go Royal (RY-T) or Bank of Nova Scotia (BNS-T). (See Top Picks.)
The industry is slowing, and this company is aware of that. There was concern with Ford (F-N) today, but the PEs in the whole space are at a 20-year low. For this to make sense, he has to see EPS contract by 30%-40%, so they are cheap. 79% sales growth and 18% EPS over the next couple of years, and a very cheap multiple with a great balance sheet for accretive M&A, for buybacks or possible dividend growth. They are only about 1% exposed to the UK, but 27% Europe. Dividend yield of 2.63%.
(A Top Pick Oct 2/15. Down 9.85%.) He still likes this. It has visible earnings growth of 12% per annum over the next couple of years. It has 11% annual dividend growth. Operationally they did everything right, but their energy book was a real problem, which knocked down their BV per share. It is doing well in both its US and Asian operations. Thinks they can grow their dividend 11% year-over-year.