Armtec Infrastructure (ARF.TO)

It is unlikely they will continue. They are in dire, dire straits and are shopping the company around. Thinks they will be delisted and shareholders will get nothing. They had too much debt and got hit by the recession.

Hasn’t looked at this too seriously in the last 5 years. Cut the dividend dramatically in 2011 and it fell dramatically. Very oriented towards infrastructure. It is concrete and precast concrete. The headwinds that governments are facing and exposure to the oil patch and Western Canada are things you should be concerned about. If they couldn’t do it before, he can’t see them doing it now.

Has been trying to talk to management, but with no success. There is no question this could go under. Looking at convertible debentures, the convertible rate is $26.70. If you hold them until they mature, you would get better than 100%, but the question is whether they actually do that. They have a huge debt load along with some other headwinds, including the weak Cdn$. However, they do have Brookfield Capital behind them.

During the income trust days, this was a big name with a very big yield on it. Long-term chart is not attractive. When people are cutting back CapX, you don’t want to be in a name like this.

(Worst call ever made.) This was a company that was brokering infrastructure projects and developing a lot of concrete work around the Calgary area. They overpromised and under delivered. Thinks the stock went down 90%. Only had a very small position. (Kind of likes it in this range and bought a little bit personally.)

Was a distressed company a year ago and he was shorting it. Got into trouble with oil sands contracts. A strategic investor has come in and backstopped their balance sheet. He doesn’t see an upside at this point.