BCV Bulletin - Recent Trading Activity - March 12, 2025
Sell: Honeywell International Incorporated (NASDAQ: HON)
BCV has exited our position in Honeywell International Incorporated (HON). Honeywell has undertaken significant action in the recent past to transform its company, including reorganizing its business segments, numerous acquisitions and divestitures, and announced it will be separating the company into three distinct entities. Throughout this activity, fundamental business performance has been mixed, and management’s actions have resulted in high costs, as well as introduced uncertainty about the path forward for the three new companies. Given this lack of visibility, we have allocated this capital to opportunities where we have greater confidence in our investment prospects going forward.
Buy: Union Pacific Corporation (NYSE: UNP)
Union Pacific Corporation (UNP) offers what we see as an enticing investment opportunity as it continues to refine and enhance its premium railroading services. Since Jim Vena assumed the role of CEO in August 2023, the company has achieved significant improvements across key performance indicators, positioning UNP for margin expansion, increased market share, and the ability to implement pricing that outpaces inflation. Furthermore, UNP is well-placed to capitalize on structural trends and strategic initiatives, particularly the ongoing nearshoring movement in North America. Fueled by geopolitical tensions and growing concerns over supply chain security, this shift is expected to drive heightened demand for domestic freight, further strengthening UNP's outlook.
Buy: CCL Industries Incorporated (TSE: CCL.B)
BCV has increased our position in CCL Industries Incorporated (CCL.B), a leading converter of pressure sensitive and specialty extruded film materials. CCL has diversified end markets, a decentralized operating model, and a global manufacturing footprint. The company has historically exhibited solid organic growth, has experienced stable operating margins throughout different economic cycles, and has a strong balance sheet. With increasing economic uncertainty, we view CCL’s defensive characteristics as attractive. With the stock trading at a discount to its implied intrinsic value, BCV has added further capital to this position.
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.
