A core holding of his since he recommended it in 2019. They sell supply-chain management software solutions which enjoys high demand, mostly to US healthcare, retailers and auto parts. They have a work backlog. But the stock has fallen along with the tech sell-off. TCS is trading at a third of its peers' (i.e. Kinaxis) valuation, so it's cheap. A quality growth name with years of growth coming.
ENB and TC Energy for a TFSA? He owns both. ENB is a top energy infrastructure company that moves crude oil. TC is more focused on natural gas, plus holds utility-like assets. Both grow their dividends and are in a good place as companies wean themselves off Russia and with more infrastructure spending to come. A safe way to own energy, which is through their infrastructure.
A leader in nuclear valves. Four years ago he was activist shareholder, but the company has made great strides since then. Their turnaround plan is in full swing. Gross margins have increased a lot and they have a record backlog. Are benefitting from energy infrastructure spending and the need for more energy. Company remains way below book value, so it's cheap. It could be sold one day. A long-term hold for a deep value investor.
A fast-growing telehealth company and are pushing hard into enterprise health solutions by offering a one-stop patient approach to the primary care and mental health sectors. They are integrating several acquisitions. They are guiding to an EBITDA of $10 million this year which they could surpass. This sector has been almost left for dead, but the digital revolution in health has just begun so now is the time to enter it.
Launched a data-capture platform for clinical trials today One reason they bought BioPharma was to digitize it, so the announcement is no surprise. THNK digitizes data and enables the connection between healthcare, government and patients through their software. They digitize clinical data, like trial data. This is one of his two e-health holdings. Its valuation is reasonable and there's organic growth ahead.
You never know the bottom on these high-multiple stocks. He's a value investor, so it doesn't interest him. As interest rates rise, the PEs on these tech stocks compress. If you buy this, expect extreme volatility. Down the road it is a profitable business.
It was formerly Centric Health which had many businesses and a lot of debt. They paid the debt and sold businesses. Now, they're 100% focussed on Canada's #1 institutional pharmacy which distributes to seniors' homes. They're automating fulfillment centres to expand margins. Again demographics are a tailwind. Tuck-in acquisitions are coming and are integrating some now, so there are expected costs. He holds a large position. Trades at a reasonable valuation. A safe growing stock.
(A Top Pick Apr 28/21, Down 2.9%) They made a transformative acquisition of Sweden's Handicare to make Savaria the largest player in this space--major synergies. A few days ago they reported a very good quarter: surpassed $100 million EBITDA target, a record backlog, and are guiding $120-130 million EBITDA in 2022, an increase of 14%. The stock has fallen 20% from its highs, but now is a very good entry point--he is buying at these levels. Aging demographics are a strong tailwind as seniors prefer to stay at home longer and not move into long-term care. Well-managed and trades at a reasonable valuation.
(A Top Pick Apr 28/21, Down 67.4%) Are building online grocery sales now. When he recommended it, he expected another leg up--and shares rose last summer on good numbers. But he sold this around $10 because he was concerned the company was no longer focusing on meal kits and was spending a lot to enter the online grocery delivery business . Selling was the right move, because they have since announced larger operating losses and weaker sales growth.
(A Top Pick Apr 28/21, Down 32%) Beverages had a good run during Covid as consumers stocked up. Peller saw good growth, even though some areas of Canada were shut down. But import costs have risen, so margins have declined in the last few quarters. The good news is that travel and restaurants are reopening--and these offer Peller higher gross margins, which he expects to gradually improve this year into next. Trades at a cheap valuation now, so it's a good time for a long-term investor to enter. Brighter days are ahead.
last week they signed a huge announcement, a patent agreement (a jury had awarded over US$100 million), though the actual figure is sealed. The money will help a lot with a recent divestment. Great value creation is coming. It's a new position for him that he's been accumulating for six months.
Wineries around the world damaged by weather Importing wines has cost more, given shortages and inflation for Andrew Peller, but DWS suffers a lot less. During Covid, they did suffer lower sales of course, but with the reopening, they will enjoy strong sales growth. DWS made two recent acquisitions in Ontario wine and Ontario cider. Lassonde of Quebec has bought 20% of this company; Lassonde expects to see higher margins in wine than their existing juices. When more retail channels open up in Ontario, he expects Lassonde to buy the rest of DWS, which would be a good move.
A safe place to invest--groceries in remote areas of Canada. Stocks are pricey vs. historic multiples, because they are defensive and stable. If you own, hold on or take some profits. Good to hold this in an uncertain world. They're well-managed.
Renewables have a tremendous future because countries are reducing their energy dependence on Russia. BEP assets are mainly hydro power, which is the most stable power (compared to wind and solar). So, BEP always trades at a premium to peers like Boralex (he owns), Innergex and Northland Power. It's stable and pays a good dividend. He doesn't know their growth plans, but he'd definitely hold onto this if you already own it.
a record backlog. expect a much better year ahead. will benefit from war Now is a good time to buy this. turnaround plan. This will pay a good return in coming years.