Irwin Michael, B.Com, MBA Aveda Trans. & Energy Services AVE-X TOP PICK Jun 13, 2013

Oil/gas servicing. Involved in the transportation side in both Canada and the US in the oil and gas industry. Feels they could become an acquisitor, consolidator by taking out a lot of mom-and-pop operations.

This business is interesting, especially if you look at 2 data points. One is the number of rigs that are working in the US, and 2 is the price of oil. They’ve been trying to consolidate a fairly fragmented business in the US. US energy companies are looking for service companies that are bigger and can operate in more territory, not necessarily mom-and-pop operations. The new management comes from big oil companies and have relationships. He expects the numbers, when they report, will be fairly good.

Has gone on a turn-around. They refinanced themselves. The rig business in the US is still fairly fragmented. Over time, this company is going to be fairly successful as they have great relationships in the oil patch, which will continue to allow them to grow their business. One thing you have to watch is that they tend to be more levered to oil/gas, depending on how many drilling rigs are being moved.