EnerCare Inc (ECI.TO)

Acquired this at a little over $4. It has paid a wonderful dividend, and has moved up very, very smartly. Good management.

(Formerly Consumer Water Heater Fund.) Rent water heaters to residences primarily in southern Ontario. Likes the stability. Had some attrition issues in the past but has addressed those. Just Energy (JE-T) recently sold their water heater division and it was nice to get them out of the market as a competitor. Market is not pricing in its sub-metering business, a way for multi-residential buildings to allocate energy according to who uses it. They will reap these benefits over the next 25 years, so he thinks there is a lot of growth left in the company. 6.5% yield and trading at 6.5X EBITDA, a very steep discount to its peers. Good entry point if you have a long-term view.

Water heater rentals, mainly focused in southern Ontario. Also, have sub-metering which they are expanding. This is for multi-tenant residences such as condos or apartment buildings. They put in meters, allowing the landlord to assign energy usages to individual tenants. Thinks this is a great long-term growth business. Not producing any profits yet. Trading at about 6.5X EBITDA versus the sector at about 10X. 6.5% dividend yield which is very sustainable.

Not a bad looking chart. Has gone a little parabolic lately. The stock could pullback, but he would continue to hold. Wait for a pullback if you are looking to buy.

Very successfully begun to arrest some of the attrition in their old products. Sees continuing growth in sub- metering business and water heaters. Reasonable multiple and excess of 6% yield.

(A Top Pick Sept 18/13. Up 5.77%.) (Pairs Trade: Long Enercare (ECI-T) and Short Just Energy (JE-T).) Has been Long this stock since 2009. Paired this with Just Energy (JE-T) because of concerns about Just Energy's underlying business and their distribution.

Things seem to be working out fairly well for this company, particularly with the installation of the smart meters they have been doing. 7% yield.

Pairs Trade. Long Enercare and Short Just Energy. ECI-T has high dividend yield, sustainable and growth potential. JE-T has opaque accounting. Their product was fixed cost natural gas, but with prices low, they can’t make sales.

(Market Call Minute.) Water heater company. Likes it. Has steady growth and doing much better this year. Good dividend.

(Past top pick May 28,2012 at $9.23 now $9.36 up 9.53%) This is a company that manages water heaters. Also, has a submetering business. Gives a building the ability to charge the tenants directly for their consumption.

This will push the payout ratio from 65% down to 60% paving the way for higher dividends.

Water heater rental company. Can see the price of this being double digits. Competition is very strong in their industry. They keep on paying a nice dividend. Wouldn’t buy at this time.

Octavian group was an active shareholder and were looking to get on the Board of Directors and do with the company as they wanted. Octavian has effectively imploded and are now selling their shares. This has pushed the stock down. Can see this one going into double digits. Do have some difficulties often with regulators but overall he likes what the company is doing. Excellent payout ratio.

Thought their recent reported results were reasonable but not solid. Feels it company is moving in the right direction and they have good management. Octavian Partners continues to buy more and more of the company. Very good dividend. Thinks it can easily be a double-digit stock and could go up to about $15. They are in a tough space and there is a lot of competition.