Dean OrricoCCS Income TrustCCR.UN.TOTOP PICKMar 11, 2006
CCS Income Trust is a larger service company involved in the oil field waste management business. Dominant market share in Canada-60% market share in Canada. More industrial waste type of business in the US. This guest likes that the business is based on production as opposed to drilling. Low pay out and low yield. But the growth has been great.
It is a single facility real estate company, holding the land for Safeway stores. A good yield and can be tax efficient. He sees higher rates coming and even though they are doing all the right things, there will be some headwinds they have to face.
Oil/gas service stock. Involved in the treatment of waste products from the drilling processes. Drilling dropped off considerably in 06 and 07, which affected them considerably. Expect drilling activity will pick up.
Oil field waste treatment. A duopoly, so very strong margins. Growth opportunities through their US expansion will be very significant. Payout ratio of 65%. Clean balance sheet.
Levered to the oil field services sector. Basically provide waste treatment and disposal services. Expecting a good quarter. Expanded into the US with some salt caverns that will provide a new growth platform for them.
(A Top Pick Sept 8/06. down 6.3%.) A very defensive trust. They clean up oil messes, clean out tanks, etc. Not dependent on the price of oil. Good growth record.
Oil field services sector, but has significant organic growth prospects. Oil field waste treatment. Recently expanded into the US with Louisiana salt caverns giving them some growth prospects. Strong long-term outlook.
Operates with hazardous and oil/gas waste. Very good management. Have increased distributions may times. Oil/gas waste will continue to grow, but at a slower pace. Looking for 10% growth.