Advertising
BUY
A long-term hold? Great for long term. ATD is definitely on his list. If there's more rotation out of staples, then this can fall to a decent entry point. They're fantastic convenience store operators and enjoying higher margins with fresh food. The 0.63% dividend is growing, but they spend their money by buying businesses to grow.
food stores
DON'T BUY
He's been following this. He's surprised the stock is so low, but the sector is struggling. The 14% dividend tells you something. Tax-loss selling could pressure this further. He doesn't own energy stocks.
oil / gas
BUY
Frustrated. They've done the right things: adding new lines to their plants and investing well. It's not getting the love it deserves. Resin prices are pressuring this. E-commerce growth keeps going so this should improve their cash flow. ITP (tape) doesn't compete with CCL (labels).
packaging / containers
WATCH
The banks as a group are becoming more attractive. He's watching them as housing stats look stronger. They're great to hold long-term. Valuations in the single-digits are compelling. Wait for a good entry point.
banks
BUY
A great story, similar to ATD. They've executed brilliantly. Their royalty program is boosting sales. As they expand in the U.S. and focus on fresh food and loyalty programs, those pave the way for a few good years coming.
merchandising / lodging
TOP PICK
It hasn't been getting love. Its business is in the U.S. They've executed very well. They operate MRI and CT scan clinics, as one of the biggest players in the States. They're in a 20% EBITDA business. Aging demographics are a huge tailwind, and Americans prefer going to clinics than pricier hospitals. (Analysts’ price target is $5.92)
medical services
TOP PICK
orgnic growth and generating free cash flows will gebneat They do janitorial services in malls, disaster recovery and other areas. This will vbe acquired one day. (Analysts’ price target is $32.33)
INDUSTRIAL PRODUCTS