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Canadian Natural Resources Limited (CNQ)
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FirstService Corporation (FSV)
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TFI International Inc. (TFII)
Now am looking at one of the 3 highlighted companies. I have not been in oil for years and do not see the price of oil being in an upward trend , however CNQ seems to be favoured by many analysts. I am impressed with TFII earnings in a sector that is experiencing softness. FSV , again , has reported good earnings with their newly acquired roofing business leading the way.
I suspect you would pick any of this 3 as my next acquisition. Should I throw a dart and see which one I hit or does one stand out from the others ?
Thanks. Derek
Yes, we would be very happy with any of these. We don’t see any overlap between the three businesses. CNQ has very generous cash flow and healthy capital return, FSV operates a capital-light business model in the real estate market with expected upside potential from the recovery while the freight industry TFII operates is showing signs of a recovery and it has been a very good compounder. We like all three names mentioned, all three names are great operators in its prospective industry, and we would be comfortable holding all three at the current prices. We might choose based on how a name might fit in with current holdings. If there is 0% energy exposure, we would likely side with CNQ simply for diversity. The energy sector, despite its issues, is ahead of the overall TSX this year.