Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, January 23, 2015

Article Excerpt

DOREL INDUSTRIES, $40.09, symbol DII.B on Toronto, is our Stock of the Year for 2015. The company makes a range of items, including ready-to-assemble home and office furniture; juvenile products, such as car seats, strollers, high chairs, toddler beds and cribs; and recreational goods, mainly bicycles. Dorel has grown quickly over the last 10 years, with revenue doubling from $1.2 billion in 2003 to $2.4 billion in 2013 (all figures except share price in U.S. dollars). This period included two big acquisitions: France’s Ampa Group for $240 million in 2003 and Dorel’s 2004 purchase of Pacific Cycle for $310 million. In late 2013, Dorel acquired 70% of money-losing Caloi, a major Brazilian bike maker, for $73.0 million. It has now integrated production from Caloi’s big plant in Manaus, Brazil, into its distribution and sales network to the point that it’s now adding to Dorel’s profits. In late 2014, Dorel bought Hong Kong-based Lerado Group, a maker of baby strollers and infant car seats, for…