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Strategies & Market Trends : Dino's Bar & Grill

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To: Goose94 who wrote (57823)4/30/2019 7:59:32 PM
From: Goose94Read Replies (1) of 203026
 
NFI Group (NFI-T) top pick from Ryan Bushell on BNN.ca Market Call Tuesday Apr 30th @ 1200ET

NFI Group is the newest holding to my portfolio after dropping nearly 50 per cent in the latter half of 2018. I have been watching NFI for some time and have been impressed by their management team. The market became very enamoured with the company in the last few years, but the shifting economic tides last fall caused a precipitous decline that is overdone in my view. The company now trades at about 10-times earnings and 5 per cent dividend yield following a 13-per-cent increase with Q4 results. There is some economic sensitivity to their business to be sure, however public transit agencies facing growing population and little political will to develop transit infrastructure continue to turn to buses to fill the gaps. Additionally, many of these purchasers are looking to lower emissions and renewing their fleet with zero emission or hybrid solutions, which apply well to the structured routes that buses take. Finally the company is growing its parts and service business, which should offset some of the more cyclical aspects of their business, as these run counter-cyclically with new orders while broadly growing market share. Broader markets have recovered to new highs while this company remains near its lows.
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