Chemtrade Logistics Income Fund (CHE.UN.TO)

Has several accounts that own this, but at “client direction”. Basically in sulphuric acid. They use acid in steelmaking and those kind of things, so it is very much an economy stock. It has done very well. In an area that he always considers a little higher risk than what he would want to put a lot of money in. He would rather have a bank or a telephone company. Has a nice yield of 5.7%.

(Market Call Minute) A Well managed company. Not a lot of organic growth.

Stock tends to trade between $19 and $22. It is at the top of its trading range, but thinks there is going to be more money rotating into it over the summer. Good dividend of around 5%. Low volatility.

Broad chemical company. Good general industrial exposure for a pickup in the North American economy. Decent company and good management team and a dividend of 5.7% and it pays out monthly. Leverage is coming down and when it is more manageable you could see a big dividend increase.

Yields about 5.5% or so, which he thinks is safe. Payout is a little high and they will be working it down. Made acquisitions that they are now paying down. This is a slower growing business. Majority of its growth comes through acquisitions.

In the specialty chemical business. They are the number 1 producer of ultrapure sulphuric acid in North America. They also produce chemicals for the pulp and paper industry. Made an acquisition of General Chemicals which leads to chemicals for the food, pharmaceutical and water treatment industries. Very good and smart management. Debt is a bit high, but that will come down with cash flows from General Chemicals. You also have the benefit of receiving US revenues. Dividend yield of 5.37%, and over time this will increase.

Likes the sustainable dividend yield. Has been beaten up a little. If you wanted to add to holdings, he would probably sit a little below the current price, and see if, on a down day, he could get it a couple of percentage points cheaper.

Industrial chemicals. A great way to get exposure to North American industrial markets. As the economy in general picks up, more acids and sulphuric acids are going to be used. Just raised $100 million in equity financing. Proceeds were to pay down debt and general corporate purposes. Thinks this was very opportunistic. As an investor, he thinks we have to question the timing of this. Great company. 2015 should be a good year for this company. 5.6% dividend yield.

This is a great company to be holding. Its main business lines are very, very stable. A very GDP type of growth, so it is not volatile. Because of this, the dividend is very secure. Made a sizable in-market acquisition last year and those synergies have yet to come through. You are earning 5% just waiting for the synergies to kick in.

A broad range based chemical company. Pays a huge dividend of around 5.5%. Chart shows its long-range general trend has been up, but the one-year chart shows it has been range bound in the $20-$22 range. A good time to buy is anywhere near $20. This is a low volatility, high dividend stock. He holds it because it is low volatility for the summer but may be selling in the fall because there might be better growth opportunities approaching in the winter.

This is really, really boring stuff. They make a whole bunch of stuff and distribute stuff that you’ve never heard of, (industrial chemicals). It grows with GDP, so it’s nothing spectacular. Made a transformative acquisition and this is how the stock goes up. Have not released any synergies yet from this acquisition. Yield of 5.85% so you are getting paid to wait.

(Market Call Minute.) Fantastic management. Made a big transformative acquisition last November.

Used to be an income trust. Great Canadian company and great industrial play. Pulp & paper and oil & gas are their markets. Grew business through acquisitions. Just completed a big one in December last year to get it a higher margin.

Provides necessary chemicals for fertilizer and other chemical businesses. Recently made a big acquisition. He owns some of their convertible bonds and he has to decide whether to convert this into stocks or not.

Recently made an acquisition and issued shares to help fund it, which he participated in. The acquisition is going to be 10% accretive to cash flow. On an EBITDA basis, the company still represents some pretty decent value. Trading at about 7.5X payout ratio below 70% indicating they could potentially increase the dividend if they are able to realize some synergies on the just completed deal.