Second stock in the clip; he and his family also own it personally. GLTA https://www.bnnbloomberg.ca/video/stephen-takacsy-s-top-picks~2558049 CARGOJET (CJT TSX)
Monopoly in the sky.
CJT is a high-growth, high-margin, high ROIC company having locked up around 90 per cent of Canada’s overnight air freight market. Think of it as a contracted pipeline in the sky. It has 34 aircraft and also offers international sub-charter and charter services. It recently announced a large new contract with DHL and its Canadian e-commerce business continues to grow by double digits. CJT takes little or no risk since it signs long-term guaranteed take-or-pay-like contracts before it buys a new plane with blue chip clients like Canada Post, Amazon and DHL. Because it’s in the transportation sector, generates some overseas revenues, and does a lot of e-commerce business with Amazon, it has been “thrown out with the bathwater.” The stock was expensive for many years and it is now very cheap trading at only 8.5X EBITDA for such a high-quality business with limited competition and high barriers to entry.
TOP PICK
Cargojet Inc(CJT-T)
06/11/2022 at 07:00pm
It is Canada's largest air cargo carrier with 34 planes. It has locked up 90% of the overnight air freight market in Canada. Has big clients along with overseas business and e-commerce. Before it buys a plane it has the contracts to back it up. High margin, high growth, high ROC, high quality. Buy 10, Hold 2, Sell 0. (Analysts’ price target is $199.36)
Transportation & Environmental Services
Stephen Takacsy, B. Eng, MBA
$130.350
Owned