acquisition strategy
Parkland Fuel Corp., $21.35, symbol PKI on Toronto (Shares outstanding: 94.1 million; Market cap: $2.0 billion, www.parkland.ca), operates gas stations, convenience stores and a fuel-distribution business, mostly in Western Canada and Ontario. It was called Parkland Income Fund before it converted to a dividend-paying corporation on December 31, 2010. The company owns 312 rural gas stations and convenience stores. Its brands include Fas Gas Plus, Race Trac Gas and Short Stop. Many of Parkland’s stations sell propane in addition to gasoline and diesel fuel. Parkland also operates Esso stations in Western Canada and Ontario under a licensing deal with Imperial Oil (symbol IMO on Toronto). In addition, it has an agreement to use the Chevron brand in B.C....
High U.S. dollar zips sales, earnings for Xylem Inc., but global trends should protect long-term demand
Xylem Inc., $37.97, symbol XYL on New York (Shares outstanding: 179.4 million; Market cap: $6.7 billion; www.xyleminc.com), sells equipment and services related to managing water. The company takes its name from “Xylem,” the Greek word describing the vascular tissue that carries water and nutrients through plants. With its products, Xylem Inc. helps clients collect, distribute, use and return water to the environment. The company operates through two divisions:...
American Hotel Income Properties REIT, $10.30, symbol HOT.UN on Toronto (Units outstanding: 34.8 million; Market cap: $354.8 million, www.ahipreit.com), owns 79 hotels comprising 6,891 rooms in 27 U.S. states.
Of that total, 44 of its hotels (which operate under the Oak Tree Inn brand) mainly house railway employees.
American Hotel believes this is a profitable niche market, as contracts with large railways keep occupancy rates high relative to the overall hospitality industry. The hotels are close to large rail-switching yards and hubs, and the railways guarantee to keep them about 76% occupied. The specially designed buildings feature crew shuttles and 24-hour food service.
The remaining 35 hotels operate under a variety of licensed banners, including Hilton, Holiday Inn and Marriott.
American Hotel began trading in February 2013, after it sold 10.1 million units to the public at $10.00 each.
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Of that total, 44 of its hotels (which operate under the Oak Tree Inn brand) mainly house railway employees.
American Hotel believes this is a profitable niche market, as contracts with large railways keep occupancy rates high relative to the overall hospitality industry. The hotels are close to large rail-switching yards and hubs, and the railways guarantee to keep them about 76% occupied. The specially designed buildings feature crew shuttles and 24-hour food service.
The remaining 35 hotels operate under a variety of licensed banners, including Hilton, Holiday Inn and Marriott.
American Hotel began trading in February 2013, after it sold 10.1 million units to the public at $10.00 each.
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Our take on the risks and rewards of growth by acquisition with Element Financial, a rapidly-expanding growth stock whose shares have soared.
The acquisition of a U.S. packaging firm looks like a perfect fit is for one of our leading value stocks, printer Transcontinental Inc.
Element Financial Corp., $18.57, symbol EFN on Toronto (Shares outstanding: 383.9 million; Market cap: $7.1 billion; www.elementfinancial.ca), is a leading independent North American equipment-finance company.
Element operates across the continent through four segments: Commercial and Vendor Finance, Aviation Finance, Fleet Management and Rail Finance.
Commercial and Vendor Finance focuses on equipment for markets ranging from transportation and construction to industrial, health care, golf and office products.
Aviation Finance provides loans for helicopters, simulators, business aircraft and related gear. Fleet Management mainly leases vehicles, and Rail Finance provides railcar leasing.
The company has grown rapidly. In June 2013, it paid $570 million for GE Fleet Canada, which it has combined with its Fleet Management segment. In December 2013, Element bought $348 million U.S. worth of helicopter and railcar leases from GE Capital and Trinity Industries (symbol TRN on New York).
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Element operates across the continent through four segments: Commercial and Vendor Finance, Aviation Finance, Fleet Management and Rail Finance.
Commercial and Vendor Finance focuses on equipment for markets ranging from transportation and construction to industrial, health care, golf and office products.
Aviation Finance provides loans for helicopters, simulators, business aircraft and related gear. Fleet Management mainly leases vehicles, and Rail Finance provides railcar leasing.
The company has grown rapidly. In June 2013, it paid $570 million for GE Fleet Canada, which it has combined with its Fleet Management segment. In December 2013, Element bought $348 million U.S. worth of helicopter and railcar leases from GE Capital and Trinity Industries (symbol TRN on New York).
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Takeovers have helped Canadian beverage maker Cott Corp gain momentum as a growth stock, but the company also faces a number of risks.
Cott Corp., $13.87, symbol BCB on Toronto (Shares outstanding: 109.7 million; Market cap: $1.5 billion; www.cott.com), is a leading maker of beverages for retailers and distributors. It also makes drinks for companies that sell them under their own labels.
Cott makes a range of products in a variety of packaging and sizes, including carbonated soft drinks, juice and juice-based beverages, flavoured water, tea and energy drinks, as well as alcoholic beverages.
The company has over 60 plants and 180 warehouses in the U.S., Canada, the U.K. and Mexico. North America supplies 80% of its revenue and 65% of its earnings. Around 26% of its beverage sales come from Wal-Mart.
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Cott makes a range of products in a variety of packaging and sizes, including carbonated soft drinks, juice and juice-based beverages, flavoured water, tea and energy drinks, as well as alcoholic beverages.
The company has over 60 plants and 180 warehouses in the U.S., Canada, the U.K. and Mexico. North America supplies 80% of its revenue and 65% of its earnings. Around 26% of its beverage sales come from Wal-Mart.
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ALCOA INC., $9.52, New York symbol AA, plans to split itself into two separate firms. One will focus on Alcoa’s upstream operations, which include mining bauxite ore and refining it into bulk aluminum products. This business will be the world’s fourth-largest aluminum producer, with $13.2 billion of annual revenue and gross earnings of $2.8 billion. The other company will focus on engineered aluminum products, such as components for cars and jet engines. This firm has $14.5 billion of annual revenue and gross earnings of $2.2 billion....