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Newalta Corp (NAL.TO)

BUY
Treat the waste oil and clean up oil drilling sites. Prefers CCS Income Trust (CCR.UN-T)
BUY
Waste management business. Originated in the oil patch handling oil field wastes and have diversified into industrial waste.
BUY
In the cleanup business in the oil patch. Thinks their growth will continue.
DON'T BUY
Looking at both this and CCS Income Trust (CCR.UN-T) and even though this yields more, he is leaning more to the other because of the potential growth. They are both great companies.
BUY
Low yield of about 6.7%. This is a growth part of a portfolio. They clean up waste in the oil patch. Very high margins. Low payout ratio of about 67%.
BUY
Owns about 40% of the oilfield waste management industry in western Canada. Represents a more defensive play in the oil/gas business. Expanding into other types of waste industries which is a positive.
BUY
They treat some of the waste by-product of oil/gas. Have been acquiring other properties in western Canada and very attractive levels, by going forward those properties will require higher prices so growth through acquisition will be more difficult.
HOLD
Oil field services and waste removal sector. Has done extremely well. Expanding and diversifying away from western Canada. Probably fairly fully valued. Wait for a pullback.
TOP PICK
Newalta Income Fund is in the oil field service industry focusing on oil field waste. Recently bought Phillips Services and Industrial Waste in Ont. Good history of returns on the capital that they are investing and the captital programs that they have put into place. Decent balance sheet. The company is positioned quite well to grow. Poised to do well over the near term.
BUY
Newalta Income Fund is a well run business. Canadian Crude Separaters is a competitor and is also a well run business. They like both funds. They own a big piece of Candian Crude which has a 68% payout ratio and a yield of 6%. They also own a big piece of Newalta which has a 80% payout ratio.
BUY
Should see fairly decent earnings for the next twelve months.
BUY
Will continue to benefit from the activities in the oil patch. About two thirds of their business is involved in oil patch activities. Just made a very good acquisition. Expanding into the industrial area in Ontario.
TOP PICK
All 3 picks tonight are income trusts as the sector has been massively oversold. With the government's white paper, the stopping of getting legal opinions and the fear of rising interest rates people sold them as though they were worthless.Feels the oilfield sector has been unduly punished. Attractive yield of 9%. Good growth record.
BUY
Involved in oil waste recycling. Like all the trusts, it has been very volatile in the last 3 weeks and could remain that way until the federal government decides what it wants to do on trusts. A good way to play the oil field withou too much commodity risk.
HOLD
A good play on the oil service sector and a lower risk way to play this sector, because they also have an industrial waste management business. Gone along sideways for awhile. Management has done a decent job. Would like to see them make some acquisitions.
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