EIF BNN Top Pick!!!The Bigguy has ‘landed’…pardon the pun :) Like what I see at EIF….so I’m in!
Made a handsome equity and yield return on my Davis + Henderson (DHF.UN)…but was thinking growth profile might have been topping out…so was on the prowl for another similar great yield story with good equity growth upside to move into when I stumbled on yer little gem EIF while watching BNN last week.
BNN guest Jeffrey Olin…who despite being a real estate analyst (with a pretty good track record) … picked EIF …non-real estate play…as one of his TOP Three BNN picks!!!
Despite recent successes with AC.B and JAZ.UN holdings...overall not an especially big fan of airline industry plays as a long term hold… but I think EIF is a bit different…in that she seems to be servicing a rather unique and profitable and growing niche airline market.I haven’t flown any of her airlines…but I have flown on similar outfits…such as Air North to places like Whitehorse etc…and was always impressed by these little outfits efficiency, professionalism and just how full flights and bustling the little airports were.These little airline and airports that service the northern regions and remote communities play a critical supply and transport link…and are usually the only game in town.And they’re not cheap. Furthermore, it’s not just the locals using them…increasing it’s the mining, oil + gas outfits and exploration lads, environmental outfits like Golder + Associates…and in some areas it’s eco tourism.
Like EIF valuation/fundamentals, especially, the 12.45 p/e and 1.14 price/sales ratio’s, whooping 9% yield…with good history of increasing dividends…even during recession…from $1.41 in 2007, to $1.51 in 2008, to $1.56 in 2009.Not bad at all! Also like management and their opportunistic growth philosophy…and despite her nice run…charts look good.Also really like the recent 5 year Medi-vac and 3 year Hydro One service contracts they scored…which should provide additional good steady cash flows.
So on Friday’s weakness…I’m in!
Happy investing and GLTA longs!