Shawcor Ltd. (A) (SCL.TO)

They are exposed to the energy market so it has not been fun for these guys. They have a number of new products coming out. It will trade with the oil price a bit here. They are in a good position to come through this period of low oil prices.

If you are going to stay in oil and gas, this would be the last stock that you would sell. It’s hard to see a lot of upside in the stock until oil prices really start to recover. He continues to have a small position in this.

It has done better than the group because it generates a lot of free cash flow and it deals more in gas, which has not been hit as heavily. He likes it as a long term holding.

They reported that their backlog went up. They indicated they will see weakness in their North American business. A lot of their bigger clients make longer term decisions. She will continue to hold it. They are well positioned longer term.

Chart is showing that it now has a higher low. You want this to get above the last peak of around $41. You could average down on this and put a Stop in at the January low.

(Top Pick Jan 10/14, Down 8.96%) It is tied to oil. She liked it because of ongoing development, which is taking a pause right now. She bought into a declining backlog, but as we work through this cycle it will be a good stock to own.

Likes it. It came off with energy stocks in general. Provides a very necessary product and service. Two to three years they will benefit along with pipeline construction.

A name he really likes. Really took a beating after peaking in August at $60, with a 38% drop. The largest pipeline coater globally. Thinks others will look at this as a potential take out at some point. Trading at less than 10X earnings. About 25% of their business is directly affected by wellhead activity but they have other businesses than regular pipeline. One projects that will keep them busy in the next couple of years is the refresh of the Enbridge (ENB-T) #3 pipeline. People forget that existing infrastructure in North America for pipelines is very old. More than 50% are over 20 years old, which is the point where they have to give some serious maintenance work on them. A good name to hold.

(A Top Pick Feb 14/14. Down 15.23%.) Still likes and a place he wants to be. Have a very specialized field doing specialized coatings for oil and gas pipes. They are an oligopoly. New CEO and are looking to getting more recurring revenue. He would still be buying at these levels

With its exposure to the industrial space, especially energy, it is going to have a tough time for a good year or two. If you have owned for a long period of time and have a good cost basis, he would ride it out. These industrial companies are going to be the last ones to bounce the most, when there is a recovery in capital spending, particularly in the energy space. A well-run company and well respected.

He is not a big shareholder. Their backlog is significant so he would not worry about the recent cancelation of a contract. These guys have a good product and deliver on time.

Because of his affinity for energy infrastructure, this one fits into his space. They do pipeline coating, etc. It has been on the growthier end of the spectrum. Has been growing its dividend rapidly, sort of 15%-20% per year. Still has a pretty low yield, but growth in the dividend should continue. Had a Russian project cancelled that put some worry into the stock, but largely their projects have continued. They have all-time highs in their backlog, which will bring cash flow down the road. Doesn’t think demand for energy infrastructure is going anywhere. A good stock to own. It could get a little cheaper.

#1 player globally in pipeline coatings. Has come off about 27% from its peaks in the summer, so is about 12.5X PE, which is very attractive. 7X EBITDA. Even if you are very bearish on the oil/gas sector, this is probably one of the last stocks you should be selling. A great, long term holding. As some point this is going to be a take out candidate. Yield of 1.43%.

This company’s major business is the coating of new pipes, either gas or oil, which adds to the safety factor. They are the leader in this field. The most recent decline was because Putin cancelled the pipeline from the middle east into Europe. In spite of this, his target price is still $55. Yield of 1.4%. He would like to wait and see how the oil price shakes out.

Have been trading at the $60 level, and is now on sale at $41. Very good growth. They got whacked on the news that Mr. Putin is not going to build a pipeline from Asia into Europe. That is $150 million worth of this company’s backlog. You want to buy when there is blood on the streets. This has good exposure to the sector and is not necessarily directly related. Pipelines will go in whether oil is $50 or $100. Dividend yield of 1.42%.