Infrastructure spending will spur Toromont

Article Excerpt

Thanks to its improving prospects and solid dividend, we transferred Toromont to our flagship Successful Investor newsletter from our Stock Pickers Digest (now Power Growth Investor) newsletter in June 2018. Since then, the stock has gained an impressive 116%. We feel higher government spending on infrastructure will continue to push the stock higher in the next few years. TOROMONT INDUSTRIES LTD. $123 is a buy. The company (Toronto symbol TIH; Aggressive Growth Portfolio; Manufacturing sector; Shares o/s: 81.9 million; Market cap: $10.1 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.6%; TSINetwork Rating: Extra Risk; www.toromont.com) operates through two business segments: The Equipment Group (91% of revenue) is the exclusive Caterpillar dealer of Caterpillar heavy equipment, such as bulldozers, backhoes and excavators, for eastern Canada. The company is also the MaK engine dealer for the Eastern Seaboard of the U.S., from Maine to Virginia. Its CIMCO business (9%) is a market leader in the design, engineering, fabrication, installation and after-sale support of refrigeration systems in industrial and recreational…