Top Pick by Gerard FergusonBNN Market Call
April 4, 2017
Gerard Ferguson - Top Picks
Gerard Ferguson of J2 Capital Management shares his top picks: Boyd Group, Polaris Infrastructure and New Flyer Industries.
BOYD GROUP INCOME FUND (BYD_u.TO 0.06%)
- Boyd Group is in the collision repair business as well as glass repair. Approximately 90 per cent of revenue is from the U.S.
- This name has been in the fund since 2011 and we are still positive on the story.
- The stock is off approximately nine per cent from its highs and we see this as an attractive entry point.
- The company recently reported Q4 earnings (March 22) and the quarter overall was solid but management was cautious on the upcoming quarter, citing weather as a concern. Being long-term holders we have seen this language before and it’s always provided a good opportunity to accumulate stock. The management team is prudent and manages street expectations very well.
- Boyd has a proven management team closing on multiple M&A deals and we view the pipeline being robust in this highly-fragmented industry. Also, recent private equity activity in this space provides a floor on valuation.
https://www.bnn.ca/video/gerard-ferguson-top-picks~1093165