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The question was on Telus or TD Bank - a difficult question since they are completely different companies. They are both great companies and he owns both. Banks and telecoms, especially Telus are both at attractive prices. There is maybe more growth with Telus so it gets the edge.
It is the second largest supplier of printed lottery tickets and a leader in web based lottery tickets in the U.S. There are only three players allowed to sell printed lottery tickets for the government, all of which have trouble meeting demand. The only problem is the big increase in the costs of materials along with fixed price contracts with the government. However the new contracts are at higher prices so there should be a great increase in profits ahead. Margins should recover and do even better. Trading at 7X earnings.
It has stopped making acquisitions, is paying down debt quickly and has great free cash flow. It is in the storage and handling systems business for grains, fertilizers and other agricultural products and does not have commodity risks. It has reported record profits and is guiding to decent growth with a big backlog. Trading at 7 1/2 times EBITA
A leading producer of railway ties and utility poles. New utility poles will be needed (double digit growth), including the fire-resistant ones that they developed a few years ago. It has a great balance sheet, lots of cash and is raising the dividend. A defensive growth stock trading at 12 X earnings.
It has two segments, Wi-Lan which is a patent portfolio, and intelligent transportation systems. It is trying to sell Wi-Lan and this would be a good catalyst if it did. It has had disappointing margins and needs to get through the implementation phase on some of the contracts. Costs have been out of control and the CEO has suddenly stepped down which means he was probably fired. A new CEO could add another catalyst to the company. They are very critical of the Board.
There are only two publicly traded wine companies, this one and Peller. The pandemic hurt both but they are doing a little better now. His company owns just under10% and Lassonde owns 30%. It needs a better bottom line but there is good upside on a take-over of the rest of the company at a much better price.
The question was on his preference for TVA Group or Baylin. TVA is trading at $2 but the Book Value is $9. Quebecor should take it over and make it private but the question is when this might happen if at all. Baylin provides infrastructure for cell phone services and the turn-around story is happening now. Three of the four divisions are doing well while one is not. It is a good time to buy Baylin.
Management wants to buy it out but there are two conflicting groups of shareholders. The employee shareholders want the lowest price possible while the outsider shareholders want the highest price possible. This type of conflict is not good. Value it as a whole, not on the split-up of parts.
The company is 120 years old and is the leading brand in North America in frozen value added seafood, number 1 in the Canadian retail segment and number 1 in the U.S. food services segment. Eating fish is considered a healthy alternative to eating meats and although Americans are not big fish eaters, there is good growth potential as attitudes may change. It is paying down debt as well as increasing the dividend by 30% and it recently reported record results. Trades at 7X earnings and insiders own 40%, almost unheard of.
It is in the marine cargo handling business with over 60 ports in North America. It recently made a very big acquisition which gives it a very strong position in the Great Lakes area. Has had record results of $4 per share and trades at10X P/E. They have owned it for many years and it hasn't been this cheap in a long time. The other side of the business is in environmental services including soil/water remediation and water pipe repairs - they have a record backlog.
Although not well known it is Canada's 7th biggest property/casualty insurance company. 70% is personal insurance and 30% is commercial. Its IPO was 18 months ago on the TSX and it is now trading at 1 1/2 times BV. It can grow organically and can now leverage its balance sheet to make acquisitions. After a nice run along with a recent pull-back, he is buying more. It is profitable and growing faster than Intact Insurance, the gold standard in Canada.
Buy 7 Hold 4 Sell 0
