Poseidon Concepts (PSN.TO)

Has been a company name on people’s minds with the big sell off in the share price. They had very high margins and whenever a company has this it attracts competition, which has happened here. The bad results really caught a lot of people off guard and they are concerned about the dividend. It looks ok here but won’t recover any time soon.

Got out a while back. They under estimated the number of new entrants to the space. 18% yield. He has read that it is probably sustainable but he finds that hard to believe.

Controversial name. Large dividend yield. They are rental water tanks. Gross margins are around 70%, which will come down as competitors enter the space. Stay away from it.

Had it as a top pick a few months ago. Took a big hit this morning but does not know why. Company continuing to grow. Simple business – tanks to hold waste water from horizontal drilling. Good base of customers. Dividend is secure and it trades at a low multiple and high yield of 8%.

(Top Pick Dec 15/11, Up 31.51%) Above ground swimming pools for fracking. If they can double the amount of tanks there is room for margins to grow.

(A Top Pick Nov 14/11. Up 36.12%.) They have a patent and have 80% of their market and there is still only a very small penetration in their business. There will be competition so doesn’t expect they will continue making the margins they are now.

7.3% dividend. Has not owned in a while. An interesting story. Now you have several new entrants in that business and they are just trying to stay ahead. Can’t maintain their margins. Not in it.

Spin out of an oil and gas company that offered a service to other customers. There is a lot of concern by street as to whether dividend is sustainable. Payback is good – one year payback. Earnings growth forecast. This is why he owns the stock. It has to rise by 4% to get the all clear for his stop loss. If it goes down below $13.50, then it is time for a re-assessment.

Tanks holding fluids that they use in fracing. They are aware of the competition and are trying to make some improvement. This is a relatively small part of the oil/gas exploration budget for most companies. They have established a great reputation of reliability, safety, environmental concerns.

(Market Call Minute) Loves it. Loves the dividend.