Shawcor Ltd. (A) (SCL.TO)

Has been looking at this, and with more pipeline expansion likely to come on in the horizon, he feels it is already being discounted in price to some extent. Doesn’t like chasing stocks. This one turned a corner recently and he would like to own it at a cheaper price. There is a lot of growth built into the current price.

(A Top Pick Feb 8/16. Down 30.57%.)*Short*. He is very proud of this company. There are very few Canadian companies that can say they are a world leader in what they do. Had this as a Short because they tend to be a late stage player in oil/gas. Feels the market got a little bit ahead of itself in pricing this in, but rather than fight the tape, he exited the position.

(A Top Pick Feb 8/16. Down 27.56%.) Short. This is a good company. There aren’t too many companies that can say they are world beaters in what they do. This tends to be a late cyclical play on the oil/gas sector. When that sector starts to rise, this company is going to react 4-6 quarters later. He sold his holdings for the time being.

It tested the 200 day and bounced off. This one is basing, so the 200 day is not as useful. It broke its downtrend and then started to base within a channel. He would be tempted to buy as a trader at the bottom of the channel.

With pipeline construction being in the tank, this has pulled this company down as well. It is the industry leader. Trans Canada (TRP-T) and Enbridge (ENB-T) may have some replacement of pipe, which will bring this company into the picture. If you own, you might want to even average down.

(An update from Jerome!) (A Top Pick Feb 8/16.) Short. He covered this on May 16/16 at about the same price.

Looks like it is breaking out of a pretty good base. It has built a very nice base on pretty good volume, and it looks like it is ready to try some new levels.

Global pipeline coatings. As a Canadian we should all be very proud of this company. There are not many Canadian companies that are a world leader in what they do. Has held this as a Long position many times. The downside is that they are going through a rough patch right now. Management feels that 2016 is going to be another down leg for them. You’re fighting a lot of headwinds with this company. They have 3 potential catalysts, including a pipeline running from Texas to Mexico, a pipeline between Russia and Germany with chances being slim to none, and LNG on the West Coast which he is very skeptical about. You should be very cautious for the next 2-3 years on this.

*Short*. A pipe coating company. Has had it as a Top Pick twice in the past, but on the Long side. About a year ago he decided that there were so many headwinds the company was fighting in the sector, that he exited his Long positions. They are going to have a very tough 12-18 months ahead. When the oil/gas sector does roll over, they’ll be one of the last to respond to it, so there’ll be plenty of time to cover a Short if there is a rally in the market. A great company and he’ll be coming back to it in the future as a Long position.

(A Top Pick Dec 2/14. Down 30.1%.) No longer owns this, but it is a great name and has been whacked with all the energy service related stocks. Quality management team. The pipe coating business is a good business to be in. A great Hold.

(A Top Pick Dec 30/14. Down 30.17%.) Felt that this was the last name you wanted to sell in the oil/gas sector. He exited this position temporarily because of all the headwinds in the sector. However, he really likes their long-term fundamentals. The largest pipe coating manufacturer globally. Very attractive niche with a long-term growth. A position that he will come back to. If you own this and have a long-term view, this is a very good position to continue.

You have to go back to 2011 to find a place where you can hang your hat. In the short term, the chart shows nothing but downside. It looks like it wants to revert to around $21. Well-run company.

(Top Pick, August 7 2014, down 34%) He likes this business. World leader in what they do. It was a great long term story. He took some profits in Oct. He considers ShawCor to be a core position for them. He is looking for an opportunity to re-enter.

Benefit from the difficulty with the energy industry finding sources of new oil and gas. These guys help extract oil and gas from difficult areas of the world.

Chart shows a little bit higher lows, which is really positive. However, there is a downtrend from September, and it looks like it has broken up through that. Because of this, we could be looking for a decent pattern in the $39-$40 area. Indicators are acting positively. The MACD is starting to come above zero which gives you a bit more trust in the other things that you see. This is one that you are going to have to either buy it lower or buy it on a breakout to a new high, as opposed to in between price action for the last year or two.