Jamie Horvat Pure Technologies Ltd PUR-T PAST TOP PICK Sep 06, 2011

(A Top Pick June 29/11. Up 9.74%.) Leak detection pipeline business. Have been getting a lot of contracts. Still likes.

Has expertise both in water as well as in oil pipelines and has seen a dramatic pick up in their oil pipeline business. Investors might like to get involved in this because of new contracts they just announced. With the aging infrastructure of water pipelines around North America, this company allows municipalities to save a ton of money.

Pipeline treatment. Has done very well over the last few years. As more and more pipelines need to be built, this company will continue to get a good share of the business.

Has owned this in the past, but has struggled that for several quarters they have made almost no money. Have lots of EBITDA, but have never been able to generate significant EPS. It has always carried a premium multiple. Seemed to have stumbled in their last quarter and even the quarter before. They are now in a “show me” stage.

An infrastructure company testing things like pipelines and bridges, etc. Has a very big water business. Made an acquisition that is starting to work out pretty well. Their technology tests a pipeline to make sure that it is still robust. Revenue growth last quarter was 71%, and 35% of that was organic growth. Management has about a 5% position. They have a “no debt” balance sheet with cash on the books. A fairly small company that is starting to hit it out of the park. Dividend yield of 2.14%.

Pipeline monitoring. There are 2 investment themes, water and infrastructure. Their technology can go into waste water and drinking water pipelines, and look for cracks and stability issues. On infrastructure, a lot of pipelines are getting old, and instead of just digging out a whole street of pipeline, they can find the weakest area, and just dig at that point. It has always had a high valuation, but has pulled back lately. He likes it, but it is one of those names you have to be patient with. You have to think of it in terms of years, not quarters. Their growth is on their oil/gas pipelines, which is growing quite well. Expect lumpy revenues from time to time as they are dealing with governments. If you can hold for 3 years, he thinks it is a good name.

(A Top Pick Aug 3/16. Down 1%.) Had a couple of rough quarters last year, and then turned it around with the most recent quarter. The backlog is growing. He really likes the potential going forward.

An infrastructure play. They provide services and equipment to inspect waste water, oil and gas pipes. It was overvalued for many years. They had had some integration issues with acquisitions. Margins are growing and costs are under control. (Analysts’ target: $6.50).

It is a great story. Fixing pipelines as well as oil and water pipelines. They have not really delivered and that is the frustration. Execution has not been there. You and do better elsewhere.

(A Top Pick Sep 25/17, Up 68%) It got taken out. He got in when the stock came down because institutional investors started throwing in the towel.