TSX:STB.DB.A - Post by User
Post by
slimjim11on Feb 22, 2016 5:29pm
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Post# 24583252
Because someone wanted it made simple...
Because someone wanted it made simple...Rising revenues per share when looked at over any 2-3 year period. Improving margins from tuck-ins, build-outs, lower fuel costs, low lease finance rates, asset-light revenue streams in Safestop and fleet management for third parties, and economies of scale in purchase and finance. Double digit yield, but it's only just still in double digits. As the shares rise, the yield falls. I can't complain at that, as I've locked in a 14% yield when the shares were lower. Experienced management in the family's third generation of this business. Predictable demand: kids have to go to school. Creditworthy customers, typically municipally funded school boards. Long term contracts give business stability and predictability. Seemed simple to me at $4.50 a month ago. Now with the stock (and my model portfolio on Stockhouse) up by a third since then, ok it's actually up 34% on share appreciation plus I've had a monthly dividend, it still seems simple to me. Buy.