EnerCare Inc (ECI.TO)

As a trade, it is very difficult at this level. This is an area where it is having problems of getting through. Wouldn’t put new money into it before seeing it break out of what it is doing now.

Rents water heaters, water tanks. Has had a good run. A well-run business. They are making acquisitions. A nice and steady business. Dividend yield of 5.6%.

A good yield play. It has been a solid name and has done a great job in water heaters, etc.

(Market Call Minute.) Very stable business. Started out with water heaters and has diversified into HVAC, and bought a company in the US that does home repairs.

One of his favourite names, and one of his longest term holdings. Likes the cash flow that they kick off. Still undervalued by the street. Historically has traded at about 8-8.5X EBITDA, but is now trading at about 10. Recently made an acquisition in the US, primarily heating and air-conditioning, which takes them away from their water heater business. That is probably a positive. Good yield.

(Top Pick Apr 16/15, Up 12.47%) They shifted from water heater sales to rentals because it creates a recurring revenue stream. A nice yield when it is hard to get a safe yield. 5.3% dividend.

This is all over the place. Home heating, plumbing, etc. Recently did another take over and the stock got hit. Had taken on a lot of debt to do it. Thinks it will do well. They pay a lovely dividend which has been increasing over the years. Wouldn’t buy this now.

A very stable, slow growth company. They do all the HVAC for Enbridge (ENB-T). They have a recurring revenue stream. This is kind of a safe, income, defensive name. Dividend yield of 5.3%.

One that he would consider owning. A business that is very stable in terms of revenue, EBITDA, and free cash flow, which they pay back to shareholders. Recently made an acquisition in the US which will increase their margins and diversify them.

Would accumulate this anywhere around $15. Payout ratio is relatively low. There is a good path to dividend and cash flow growth. A very sustainable business, especially given all the acquisitions they have undertaken in the last couple of years. This is going to be a very steady performer where you are going to be able to bank on 5%-10% total return through to 2017.

(Top Pick Apr 16/15, Up 10.02%) He is buying it still for new clients. He likes the new acquisitions.

Water heaters. This is under the theme of having something relatively safe with a dividend. Made a US acquisition which looks pretty awesome, looking like 25%-35% accretion over the next 12 months. They had to finance this with equity and debt. The backward PE looks expensive, but the forward PE looks pretty good. Think you can see 15%-20% in 12 months, before going back to a regular 5%-7% or something. Dividend yield of 5.44%.

He bought this at $4+. Has been happily accepting the dividends, which go up pretty much every year. CEO has been a wonderful operator. Thinks it has further to run.

(A Top Pick Dec 30/14. Up 16.42%.)*Long* (A pairs trade with Just Energy (JE-T). Provider of water heaters in southern Ontario. They also do sub-metering in apartments and condominiums, which he views as the growth medium for the company. Nice yield of about 6.5%. Relatively cheap.

Chart shows it is hitting a level of resistance that it has hit a couple of times before. It now looks like it is rounding over. That is very, very significant. There is very definitive evidence that the support levels are coming in at around $13-$13.10. A bounce off of that, like it did recently, is positive. You could trade it to the lid. When you are near the lid, the only way you would buy it is on a break out.