Top PickFirst stock in the clip; he and his family also own it personally. GLTA
https://www.bnnbloomberg.ca/video/james-telfser-s-top-picks~2320846
Park Lawn Corporation (PLC TSX)
At Aventine, we tend to gravitate towards companies that can compound capital over long periods of time with organic and inorganic growth opportunities. We have always been drawn to the cemetery business, which tends to be recession-proof, inflation-protected, and highly fragmented.
Currently, there are two major players within the industry – Service Corp (SCI-US) and Park Lawn (PLC-TO) – in addition to several private equity players. As such, the industry is still dominated by mostly independent operators, which comprise 89 per cent of the market.
We expect Park Lawn to continue its long track record of successful M&A by utilizing its pristine balance sheet – currently 1.2x Net Debt/EBTIDA. Park Lawn has completed $700 million in deals (31 acquisitions) since 2014 and has consistently generated strong returns on capital.
While organic growth has been strong during the pandemic (~11.5 per cent), which is set to normalize, the company has built a $130 million war chest through a bought deal to execute on their internal pipeline of potential acquisitions.
We expect to realize several catalysts by way of announced deals and earnings surprises in the years to come, especially if management can live up to their guidance of closing $100-$150 million in deals annually in the $20 billion funeral and cemetery industry.
TOP PICK
Park Lawn Corp(PLC-T)
11/11/2021 at 07:00pm
This business is not impacted by inflation. Has been impressed with how they operated. Has executed a growth by acquisition story in the US. They have done many deals and the market is still fragmented so there is still growth. People want to do business with PLC. Earnings have been positive and they are adding more services. A good long term buy. (Analysts’ price target is $44.56)
REAL ESTATE
James Telfser
$39.980
Owned