# Favorite underated hardly followed stock



## londoncalling (Sep 17, 2011)

Hi all,

Inspired by Humble's post in the individual stocks thread (http://canadianmoneyforum.com/showthread.php/10606-CHE-UN-Chemtrade-Logistics-Income-Fund) I have decided to start this thread in hopes of finding diamonds in the rough...

This thread is intended to be a place for members to post excellent long term holds of little known or under rated stocks.

My selection/suggestion is Chemtrade Logistics. I would appreciate for others to post the names or tickers of similar companies that are not pumped by analysts but are considered to be excellent long term positions. Please give the name of the company and your insight as to why it is a winner. For me, Chemtrade was a value play at the time with stable income and and the potential for some growth through an acquisition. I was initially attracted to the yield and sustainable payout ratio. After some research I was amazed by the management and business model as well as the moat that this one had. Although I do not expect a dividend increase in the near term, I doconsider this one to have the potential to someday become a dividend aristocrat. Of all my current holdings, I researched this one the most. Partly the extra research was due to the lack of easily accessible info on the company. Furthermore, I felt the need for additional DD as it seemed to be an unknown company in comparison to a BCE, TD, CNR or SU which should be less risky.

Cheers


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## HaroldCrump (Jun 10, 2009)

One of mine is Premium Brands - PBH
Canadian food manufacturing, packaging and distribution.
Market cap of about $350M, so it's smaller than your CHE, volumes are lower too.
I don't believe it is covered much by analysts, so seems to fit your criteria.
You will find a lot of information about them on their website and on the Internet, since they own several well known brands you see at grocery stores.

I'd add the usual cautions about doing your own DD, studying the financials, etc. and all the checks required for a high yield, ex unit trust stock.
It is at all time highs so be careful.


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## sags (May 15, 2010)

Auto lender Carfinco was ignored by investors for a long time.

The stock went from 25 cents to over 8.00 in a few years, and pays a dividend.


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## Eder (Feb 16, 2011)

I like High Liner Foods. It is very thinly traded but is growing,raising its dividend every year,and becoming more profitable. Pay out ratio of only ~33% so I'm sure more div increases are coming up. Buy it/forget it.

Have you ever been to sea Billy?!! arrrrr


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## Soils4Peace (Mar 14, 2010)

CCL.B: low beta, steady growth, non-cyclical, grows its dividends :sleeping:
MRD: $0.5B market cap and no one ever talks about this one


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## Causalien (Apr 4, 2009)

SWI, solar wind. Not a solar energy company.

Hasn't had any article written on it by people since October and i like how much less drama and lawsuit there are this way.


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## Canuck (Mar 13, 2012)

Student Transportation-STB

Medical Facilities- DR


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## Canuck (Mar 13, 2012)

oh and Leisureworld-lw


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## maxandrelax (Jul 11, 2012)

Canuck said:


> oh and Leisureworld-lw


I always laugh when I hear Leisureworld for some reason. 

I really like Sandstorm Gold (SSL) It is a gold streaming company like SLW silver wheaton, run by former SLW COO Noel Watson. Great looking chart.


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## Financial Cents (Jul 22, 2010)

ESI. Steady dividends.


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## indexxx (Oct 31, 2011)

Atlas Pipeline, 

Eght


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## dotnet_nerd (Jul 1, 2009)

I like KBL (K-Bro Linen).

If dirty laundry's your thing have a look.


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## londoncalling (Sep 17, 2011)

This has been a great start for me. Some of these names I know well or recognize but others I have not heard of till now. It definitely gives me some leads. Thanks CMFers. Keep em coming! :encouragement:


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## liquidfinance (Jan 28, 2011)

Canuck said:


> Student Transportation-STB
> 
> Medical Facilities- DR


I did own stb for a while and came out ok with them but for me they essentially seem to be paying out their dividends by borrowing more money. They are growing through acquisition so as soon as the growth stops and the new money coming into finance the operation stops I can't really see where it will go. It worries me a little. Although I do still keep my eye on it. 

I like Chemtrade and when I have watched for a while and doesnt move much but pays out regular is GameHost GH.to


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## HaroldCrump (Jun 10, 2009)

We have discussed STB on the forum some time ago.
I had expressed concerns back then as well.
They seemed to be paying out their depreciation as well as issuing new equity/debt to keep up the distributions.
I keep thinking of what happened to Laidlaw (very similar company).

However, in the last little while, they have done a few things that seems to have helped the stock price.
They have made some acquisitions and listed on the NASDAQ exchange in the US.
Plus, in the last couple of years or so, pretty much any junk, ponzi stock that pays high yields has done well because of the whole interest rate situation.

I think STB's luck will continue to hold on for some time to come, but I wouldn't buy at these all-time high levels ($7+).


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## P_I (Dec 2, 2011)

Stella-Jones, symbol SJ. From their website, "Stella-Jones is a leading North American manufacturer of pressure treated wood products. The Company's core product categories, railway ties and utility poles, provide basic elements of the economy's physical infrastructure." 

They are a consolidator in their industry, making smart bolt-on acquisitions to expand their business. They have a pretty good track record of growing earnings over the past decade. They have been rewarding shareholders with rising dividends as profits increase. At current prices the valuation could be a bit pricey.


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## rookie (Mar 19, 2010)

rollins - ROL

steady growth steady dividends. my only concern is that their management team is very old, most of the people on the board are over 70 years...


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## gibor365 (Apr 1, 2011)

CHE.UN also looks to me as a good dividend stock with pretty sustainable dividends...

The question was about underated stocks... so from Canadian stocks I own , hated by many: RCI.B and TRI. 
RCI.B is practically monopoly in Ontario, has Payout ratio 50% (just compare with T.US and for T.US in about 1 year i gained more than 20% + div ). Also RCI raises dividends every year by double-digit value. I'd wouldn't say I like very match their customer service, but imho it's better for stock holder.
TRI - is practically the only US dividend contenders with almost 20 years dividend increases... 

Stock that I don't hold, I like GH ...long time wanted to buy it , but it's going up and up....


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## liquidfinance (Jan 28, 2011)

I decided to get in on GH the other day. I had been waiting for the price to drop but it just seemed to be sitting there so I got myself a small position.


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## gibor365 (Apr 1, 2011)

liquidfinance said:


> I decided to get in on GH the other day. I had been waiting for the price to drop but it just seemed to be sitting there so I got myself a small position.


 This is what I should've done more than 6 months ago when I started to track GH.... could've buy it in low $11, but was waiting if it goes below $11...than below 11.50 and so on, but it didn't really dropped....
On other hand , had similar situation with CHE.UN, bought and .... it started to drop....  .... se -lja-f$%&ng- vi


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## liquidfinance (Jan 28, 2011)

At the moment I am going to have to say 

Sir Royalty Income fund. SRV.UN :biggrin:

This has been a little gem for me since I got into it. Yielding just under 8% at the minute. 

No idea why it increased over 3% today but not going to complain about that for sure.


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