Dean Orrico
CCS Income Trust
CCR.UN-T
BUY
Jun 23, 2006
Own about 60% of the oilfield waste management industry in western Canada. Dominant in their space. Good defensive play in the oil/gas sector. Make good acquisitions on an accretive basis.
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.
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.
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.