Badger Infrastructure (BDGI.TO)

Thinks people were primarily buying this for the dividend but there has been a lot of growth, both top line and bottom-line. A company tried to bid for them in 2011 and since then the company has done a great job of growing their earnings both in the US and Canada. If you own, consider taking a little bit of profit.

(A Top Pick March 20/12. Up 40.82%.) They use high-pressure water to move earth. Customers include utilities, pipeline companies and energy companies. Biggest player in the Canadian market by far. Have moved into the US where there is lots of room for expansion for them.

Chart shows a good upward angle with a sharper pitch from late 2011 on. Could come back and correct a little bit to $30 but it looks like it is going to keep going up until it doesn’t.

How can you argue with this trend. Some of the momentum indicators are quite overbought. The trend is with you but it is probably due for a pullback. As a new purchaser, wait but if you already have it then hold on for a while longer.

Just hit a 52-week high. (An original 52-week high is probably never the last.) This stock has had a number of 52 week highs, so when you are buying at the top it is a risky situation. Average in by buying a little bit now, hold off for 3 or 4 weeks and then by more. Probably a third each time. Trading well into overbought territory and has been for some time. 3% dividend yield.

Use sophisticated trucks with hoses to expose pipe, pipelines, anything under the ground that is buried. Management says they can be 3.5X bigger than they are now before approaching saturation. Growing at 28% year. Dividend yield of 3.12%.

(Top Pick Jan 19/12, Up 56.12%) Huge run and he still thinks there is lots of upside in it. Moves earth by high pressure water. Expanded into US, which is its largest growth area. Raised dividend, and more upside in dividend. 3.33% yield.

Have trucks with high-pressure water guns to clean off drainpipes faster and more efficiently. Great demand by telecommunication services, pipeline, utilities, etc. Anybody that needs to get underground. Great management team and great long-term track record. Would be surprised if it is not a $37-$38 stock by the end of the year.

ROE is around 29%. Very nice dividend while you wait. Some people thought last quarter was a little bit weak but he didn’t see what the problem was. This is definitely a play on North American infrastructure, so if you think the roads are going to continue being torn up in major cities, then this company is going to be very, very busy.

If a utility that wants to do some digging without the risk of hitting something, this company comes in and uses high-pressure water. Have moved into the US market but have a long ways to go. Lots of growth ahead of them. Long-term he thinks there is lots of upside.

Management is very good at executing their plan, return on equity of 30%. 9x cash earnings.

(Top Pick Sept. 23/11, Up 68.98%) Loves it and continues to thank shareholders for stopping the takeover. Lots of opportunity in the US and a great dividend that should continue to grow.