BCV Bulletin - Recent Trading Activity - February 24, 2025
Sell: FedEx Corporation (NYSE: FDX)
We have exited our position in FedEx Corp (FDX). Through the first half of this year, cost saving initiatives delivered through FDX’s DRIVE program have come in below expectations, accompanied with weaker volumes as a result of a soft industrial economy. The company has lowered guidance twice for the fiscal year 2025, and will have to execute on a strong second half in order to deliver on their guidance. We believe that the increasingly uncertain macro environment may make execution for the back half of this year difficult. While the company’s recently announced separation of their freight business may crystalize value, and further execution on DRIVE can contribute to meaningful improvement in fiscal performance, we believe that our capital may be better allocated elsewhere given the uncertain macro environment.
Buy: Parkland Corporation (TSE: PKI)
With the proceeds from the sale of FedEx, BCV has increased its position in Parkland Corporation (PKI). Parkland is a leading retail convenience operator, as well as a producer, distributor, and marketer of fuels internationally. A recent court ruling enabled a large investor in the company to begin pursuing shareholder activism, which we believe could unlock substantial value for all shareholders. BCV believes that these efforts to advance the strategic direction of the company, combined with operational and macroeconomic improvements, could lead to an enhancement in the company’s financial performance and provide attractive returns to investors.
Buy: FirstService Corporation (TSX: FSV)
With the proceeds from the sale of FedEx, BCV has increased its position in FirstService Corporation (FSV). FirstService is a leading provider of residential community and amenity management services to over 9,000 communities, as well as essential property services to customers across North America. The company continues to execute well on its strategy to grow organically and consolidate the highly fragmented markets it operates in. We believe FirstService has an excellent business model, strong management team, and compelling long-term growth prospects across both its Residential and Brands divisions. Recent share price weakness has created an opportunity to increase our ownership in the company at what we view as an attractive valuation.
This BCV Bulletin is intended for residents of the provinces and territories in which we are registered, is not meant to be a solicitation to any persons not resident in those jurisdictions and does not constitute an offer to buy or sell our products or services. Any opinions expressed are just that and are subject to change. Information is provided on a best-effort basis and its accuracy cannot be guaranteed. Information may also be provided from third party sources which are believed to be reliable, but we do not guarantee its accuracy or completeness. Certain statements may contain forward-looking statements, which involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This BCV Bulletin has been prepared for general informational purposes only, is not intended as investment and/or financial advice on any subject matter and the securities mentioned should not be construed as a recommendation for any specific securities. ©BCV Asset Management Inc. 2025.
