Enterprise Group (E.TO)

The trend is your friend and the trend on this is definitely up. This was a big, long breakout after a couple of years of absolute sideways movement.

Likes it. They are a supplier to the pipeline industry with a product that heats up pipelines. Likes the management team. They will do good things going forward. Is a consolidation story.

Likes this. Valuation is very cheap. Company amalgamated a few different businesses and one of the most interesting one is trucks that heat pipes that go into the ground to prevent them from bending, which saves piping companies a lot of money. Demand for this is huge. Trading at very cheap valuations. If you are buying, stage your purchases with the hope that the stock comes down to $0.60. She could see this stock getting to $2. (Host comment: 2 analysts only, one showing $2 and the other $0.85.)

Underground infrastructure doing a variety of things with pipelines, cables, etc. Feels it has a lot of growth. Riskier but they are acquiring "bolt on” acquisitions. For example, one division heats up pipe when you put it into the ground. That’s important because if you put pipe in when it is cold, weld it together and then put hot product through, it tends to buckle. Think they have some pretty spectacular growth opportunities ahead of them. Recently acquired a tunnelling company that specializes in boring holes for pipelines.

Consolidating a bunch of niche little businesses that are in common underground infrastructure in some way. They can cross sell services to existing customers. Also acquired some very interesting, high-margin and high return businesses, one of which is called Arctic Therm, which has patented large scale heaters that heat up steel pipe before it gets installed.

They all trade at low multiples. There is no one following them. It looks cheap but they will not garner high multiples.

Edmonton company that is basically in underground infrastructure. Have 3 divisions such as pipeline laying, underground cables, etc. Just acquired a company that has a propriety Tory technology of heating steel pipe before it is put in the ground, which prevents buckling in the cold weather. This company is in the process of raising money to expand this new area.