Petrowest Corp (PRW.TO)

Owned this in the past and was really disappointed with them. They have the SiteC contract, which should give them great cash flow ability, but they keep having delays which has affected their cash flow, which has affected their covenants, and are now having a lot of troubles with their balance sheet. Longer-term, they should have a ton of work both from the SiteC project as well as from the recovery in the oil activity in Western Canada.

It has come off because they are doing a lot of work on site ‘C’ in BC. There were weather related issues causing delays and hitting margins. If you price contracts too low you don’t make money. It is probably a half decent entry point here. You want to watch the operation quarter by quarter and see that they can make money off them.

(Market Call Minute.) Just recently bought back into this one. Thinks it is not really appreciated by the market.

(Market Call Minute.) Getting more constructive on this company all the time. They were awarded the main civil work on the Site C Dam in BC, which is going to have big things for their numbers. Would like to see it improve a little bit more technically before adding.

They got the award for the Site C electric dam in BC, and there are a lot of positive things going to come out of that. A big upside could still come if they get more of the transmission lines work. Expecting there will be some nice quarters coming out of this. This is one he would be looking at.

This has some momentum. In October it sort of spiked up. Right now there is really not a lot of resistance until we get to about $1. This is a small-cap, and sometimes technicals can change really rapidly with news announcements.

Any strength at all in any kind of crude move, these little juniors could go. While falling from $1.50 all the way down to below $0.40, it was straight down. Now he is seeing, even in the weak oil state that we have, it is starting to consolidate. The little spike showing in the chart may indicate the stock is on the move. He would have no trouble buying this.

The downtrend from mid-2014 looks like it was broken. The formation is called a cup with handle. What you need is the last high to be broken, and that could be very bullish. There are a lot of positives on this chart.

This is a speculative play. If they get the contract from BC Hydro the stock will jump. The odds are they are going to get the contract. But this is a one off opportunity, whereas he prefers to invest in companies that are going to grow their earnings over time.

A construction company that has a lot of heavy machinery and very active in producing gravel. They suffered from being Alberta focused. Thinks you should be cautious on this. Nothing against the company, it’s just that the environment is so poor right now. What could skate them onside is LNG, which looks real. Not sure that LNG provides enough work to compensate.

Just recently got a huge contract for the Site C project for BC Hydro. It provides a lot of visibility in terms of EBITDA growth for the next few years. The company looks interesting and she is going to be meeting with them shortly. She doesn’t look at this as an oil/gas company per se. They do have some infrastructure and construction capabilities that flow into the oil/gas space which makes it interesting.

The site ‘C’ announcement is coming up soon. They are one of 4 bidders. Even if they are not successful, they will still get work. The replacement value of their equipment is $0.53 and they are trading at less than half that.

Chart shows a 5 wave correction, so this is probably now at a bottom. He would be careful. With a penny stock you are just not going to get the institutional following.

They announced a new contract this week. There is also LNG. The banks are starting to play the game with them.

Has been crushed in the last 2-3 years. It’s a way to play the infrastructure boom in Western Canada, and is more of a play on BC LNG. He is very cautious about the prospects for LNG in BC in the current environment.