Enterprise Group (E.TO)

They have the Arctic Therm, (flameless heat) and underground infrastructure construction. There could be a tremendous amount of work for them if LNG goes through. They use the Arctic Therm to heat the pipes before they weld and put them in the ground. This removes any of the expansion and flexes that could happen. Have had good numbers. Not quite as focused which makes him a little bit nervous. (He prefers Petrowest (PRW-T.)

There are 3 companies that he likes in this space that are going to benefit from the infrastructure boom. They are small and in the contracting equipment rental. His top pick is Petrowest (PRW-T) which just came out with spectacular earnings. Macro Enterprises (MCR-X) and this one are the other 2 that he also likes.

Prefers Petrowest (PRW-T). This one has been a lot more lumpy in terms of earnings and Petrowest has been a little more consistent. Cash to price flow is 7, which is more expensive than Petrowest.

Has held in the past, but not now. They are growth by acquisition and by being the right service sector. If LNG and Nat Gas boom continues then numbers will start to get higher. Petrowest jumps at him a little more – it screens better.

Likes it. Acquired companies that all deal in underground infrastructure. Well positioned to what is going to be a decade of building out western Canada because of energy companies. Just did a financing that was massively oversubscribed. Thinks you will be pleasantly surprised by first quarter numbers.

Very much likes the name. Provide a lot of support for infrastructure projects such as pipelines, bridge building, tunnelling, etc. Also, have a division that competes with Badger Daylight (BAD-T) in tunnelling. Good way to play infrastructure and on pipelines. Super cheap trading at about 3.5X EBITDA. Made a series of acquisitions in the last 18 months and have stated that now is the time to integrate the businesses and grow them organically.

This shows a base breakout, late 2012, early 2013 with a strong upward trend. It has recently been consolidating a little bit. So long as the trend line is not broken and the 200 day moving average is not penetrated, you are probably best to stay with the story.

(Market Call Minute.) Likes it. The company is going places.

Have had in their portfolio. Just added it back. Everything that is happening in Western Canada. LGN to oil sands. If you look at the numbers, they continue to go up. He would not have an overweight position in it.

(Market Call Minute.) He can get pretty excited about what this company is doing. Have acquired a number of different businesses and earnings are ramping up. If the oil patch. Continues and LNG goes through, they should see some big earnings growth.

Has not moved much for 4 months, but it did one acquisition in that time. It is solid. Not setting the world on fire when it comes to investors. He is holding.

He bought the most recent financing but there was a nice warrant attached to it which enticed him. Business momentum is okay. Essentially a rollup of various energy services types of companies. Because it’s had such a nice run, it has a valuation where it could purchase other smaller companies accretively and as long as it has this ability, the stock could continue going up. However, once that game ends, it tends to end badly.

Likes this. Essentially they assist pipeline companies in constructing pipelines. There is one particular division that he likes called Arctic Therm and they are starting to increase the utilization of that division. Has had nice performance this year but he continues to see upside. Very positive on pipeline construction companies, as opposed to pipelines themselves.

Basically they acquire underground infrastructure subsidiaries, companies that do hydrovacing. Their specialty is heating up pipelines before installation. Well-positioned to benefit from what is happening out West, not just in terms of big megaprojects, but also new housing developments. Just closed a very big financing and are going to make a very big acquisition that looks very interesting to him.

Likes this story. It has done well. In the service sector you are never going to get a really high multiple. All of these stocks have moved up and look really cheap on a valuation metrics but he wouldn’t expect valuations to move up a ton. He has taken a little bit of money off the table.