Shawcor Ltd. (A) (SCL.TO)

Loves it. 25.5% total return expected. Very favourable PE ratio. His entry point would be $48 if it got back there. It dominates its industry. The big jump in the next year is due to major new contracts. Thinks pipelines are a growth area and this one will go along for the ride.

Has come under pressure like a lot of energy stocks. It is a coating for pipes, so it is not exactly a direct play on the oil sector. Have shown pretty good earnings growth over a number of years. Well-managed. Sort of a unique spot with regards to the product they have.

They provide the coatings to help make pipelines. This has been under pressure, but has been very strong over the last couple of years. If you are going to play the energy sector at all, some of these ancillary businesses that provide services to the energy business may be the safer and more sustainable way to play energy.

Likes this and thinks it works higher. One of the better stocks in the sector. The trend is up. Chart shows a channel from 2012, so accumulate on the lower channel.

Related to the oil price, but not directly because they do a lot of coatings in the services space. Kind of close to the pipelines businesses. Stock is acting like a typical services name, but it is not. Fundamentally, the operating diagnostics of this company stack up brilliantly. This is a good name to own.

One of the largest coaters for pipelines globally. They have a leading position. He read recently that 50% of North American pipelines have outlived their economic usefulness and are living on borrowed time. Opportunities for both new pipelines and replacements are legion.

Really likes this and just acquired more recently. The #1 pipe coater maker globally. Also, the dominant player in the offshore segment, the fastest-growing segment of the oil/gas world. Likes this, it is a great, long-term hold, because we don’t know who is going to be building the next pipeline or where it is going to be built, but this company is very likely going to be in the middle of it. Also, this is going to be an attractive acquisition for somebody down the road.

He was waiting for it to come back to a buy range. Right at the 200 day M.A. Buy it here.

One of his favourites. Coatings for pipelines. Came off because there was a decline in the backlog. This is over with now and they should win most of their current bids.

This is a great, long-term hold story. It is going to go up and down with their pipeline. They do a lot of big projects. He would be really comfortable with this, even at these levels.

This is a play on continued buildout in infrastructure and this is certainly something you can look at. Has a very attractive long-term theme and he sees no change in that theme.

Likes this one. It is unique in that they provide global pipe coating services. They are seeing a nice pickup in their backlog. She would start building a position if you don’t already own it. Her target price is in the mid-$60s.

A 5-year hold is probably appropriate for a company like this. One of the major pipeline coating companies globally. Has 25%-30% of the market. Earnings are down from last year, but in the last quarter, they have increased their backlog by about 6% sequentially, and it looks like they are bidding on another billion dollars of contracts. If you are looking at this for a 3-5 year hold, it is a Buy right now. Can see a 10%-11% increase in the next 12 months, about 14% including dividends. Dividend yield of 1%.

If somebody said to him that you have to pick 5 stocks that you like, and have to keep them for 2-3 years, this would be one of them. A three-year chart shows a perfect position. You have your advance in 2012, followed by a corrective period in 2013 followed by a breakout in 2014. Feels it goes quite a bit higher. Perfect stock for the time.

Great long term hold. Indirect play on pipelines. Doesn’t know who builds the next one, but SCL will be in the middle of it. At the end of the day, someone will take this one out. Stock came down this year because it had such a great year last year.