New Podcast Episode!
In this episode, Chris and Zach discuss the a few Canadian small-cap names, an in-house research piece on US small-caps, what we are seeing in Q2 earnings, and the meme of the month.
New Report
We have posted a new report on Element Fleet Management Corp (EFN). EFN is the largest publicly traded pure play automotive fleet manager in the world. EFN provides business-to-business (B2B) services and financing to corporations, governments, and not-for-profits which operate fleets of mission critical vehicles. EFN’s revenue is primarily driven through two activities: 1. Financing leases for clients who require fleets of vehicles, and 2. Servicing these vehicles. This gives investors unique exposure to a business with both industrials and financials operations. General tailwinds of digitization, electrification, and lower interest rates could all potentially be positive catalysts. The stock offers growth and some income through its small dividend, and we think its fundamentals are becoming increasingly attractive.
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Report Updates
We have posted report updates on TMX Group Limited (X) and Spin Master Corp (TOY). X operates as an exchange facilitator and clearinghouse for capital markets in North America. TOY is a leading global children’s entertainment company through its three creative centers: Toys, Entertainment, and Digital Games. Both companies display strength in their management teams, however one is a high-quality dividend grower trading at a premium valuation well-positioned to grow its data analytics and insights solutions, while the other is a value opportunity that is facing macroeconomic pressures negatively impacting demand which has us contemplating a downgrade.
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Dropping Company Coverage
We are dropping coverage on Park Lawn Corporation (PLC). PLC announced at the on June 3rd, 2024 that it had agreed to terms in a ‘go-private’ transaction with Birch Hill Equity Partners Management Inc. Birch Hill will acquire all outstanding common shares of PLC at $26.50 in an all-cash transaction for total consideration of $1.2 billion, including PLC’s net debt. The takeover was a significant premium from prior trading levels and shareholders recently approved the transaction. We feel that the deal is likely to close and are dropping coverage of PLC.
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