Amazing company to watch to see how it went from selling books to basically everything and eventually run everything given the way it goes. As long as the investors agree with management to look at growth as opposed to short-term earnings and cash flow then they will continue to execute their strategy and disrupt areas. He thinks that a risk is if they fail in one or two areas they enter. That would be the time to take a second look.
(A Top Pick July 6/17 - Down 30%.) Has not done as he expected to do. The story is that they built new facilities and expand in new areas. But they ran into some problems. The execution hasn’t been as good as he hoped for. Eventually he thinks it will work out, but it is taking longer than expected. He thinks the yield is safe.
Has had a roller-coaster ride in the last year. It was one of the go-go stocks buying private dealerships, but they hit a downturn and then now new Management took over. He thinks new Management is eventually going to improve execution. There is concern also in terms of peak sales in automobiles. They continue to expand and diversify from Alberta. Depending on your view of auto sales you should look at the stock.
Their original business was to build houses for oil and gas business. They have diversified to construction houses. The biggest upside is if liquid gas projects get sanctioned here they have a good chance to get a contract on that. A good little business. Good upside. (Analysts’ price target is $3.31)
Company that stared in Canada and expending in the US. The yield is still abnormally high. He thinks that they can still sustain that. They have been great at selling assets at good valuations. He thinks the yield is crazy and should get [through price appreciation] to more normal levels like 5%. They won’t cut the dividend as they have funding. (Analysts’ price target is $28.95)
Company that operates in a semi-monopoly business. Not a growth business. They are growing in the high-speed internet side. As long as nothing comes from the technology side to disrupt the whole space, the company is safe for an income portfolio. It will be fine given the 5% plus yield.