Michael Smedley Kelso Technologies Inc KLS-T COMMENT Oct 30, 2015

Has a technology that relates to rail cars, so it is a play on crude by rail. Interesting, but in this environment he suspects there will be a lot less crude by rail being transported. You are sort of fighting some macro headwinds on this. Interesting from a bottoms up perspective, but not enough for him to get interested.

Primarily in railroad tank cars, and has an association with oil here. Does valves and covers. It has a chance here of getting into the retrofitting of railcars and into the new ones, with what appears to be better components than what existed prior to this. Got hit because of the connection with oil, but the cars are mainly for hazardous chemicals, etc. Oil is likely to be down for a while and this is helping the correction for a while.

Retrofit valves for rail cars. Regulations require use of their valves. No debt, sitting on cash and growing fast. Did not get hit last year with collapse in oil, but hit hard this year. They have regulated growth, which is perfect. 20 times revenue. It is expensive so not for everyone. The revenue base is going to be there in the future, so they have to execute and perform. The good news in the story is pushed out. Good investment for a 5 to 7 year time frame.

This was a hot stock in the crude by rail sector. That bubble is now over. However, this company has technology that increases the safety. He thinks that adoption will continue, but at a slower pace.

This is down again with the market. There are special effects with this company with the railcar disaster. Improvements have to be made. However, that is something that this company benefits by because it has products which meet better standards, and it has prototypes under development. He would continue to just Hold and doesn’t see much wrong with it.

It is steady as she goes where they are developing new railcar safety components. A sector that smells of energy, which is not generally good. There is not any explosive action with the company, but it is established and has great technicians. They have to win contracts with the railways.

Doesn’t know if this has been trashed by the descent in the market in the attachment of the oil/gas sector in Western Canada, because this has to do with rail transportation of hazardous material. It continues to bring out new equipment/accessories to put on rail cars. He wouldn’t buy more at this time.

Technology for railways cars. The stock price has come off dramatically. It would appear that they are building a base. Also, EPS has gone negative, so it is not a stock he would be involved with. There are better opportunities elsewhere.