Shawcor Ltd. (A) (SCL.TO)

Pipes are essential for getting oil/gas to market and their coating prevents corrosion. They insulate and inspect the pipes and there is a lot of work onshore and offshore. Have 80 facilities in 25 countries. Not a lot of competition in what they do. He expects to see more projects. Trading very cheaply at about 11X forward earnings and 7X EBITDA. New president is very impressive. Yield of 1.15%.

(Top Pick Mar 19/13, Up 7.50%) They had a fair sized profit warning a few weeks ago. Part of their business in Asia got pushed out, but fundamentally it is a great core business that generates a lot of cash. Thinks it will be significantly higher in the future than it is today.

Not every energy stock will do well. This one already did well. Since beginning of 2013 support held but broke last Friday. Consider switching to another energy such as his top pick today.

Bought this a few days ago, prior to the warning that came out. Had 2 very big contracts they had just finished working on. From a valuation standpoint, she did not see a ton of downside. A lot of bidding activity, which gives them the potential to get back up to the peak earnings that they had last year. The stock’s action today was quite encouraging. Will benefit from a lot of the oil/gas development that is going on globally.

(A Top Pick Aug 9/13. Down 6.04%.) He is even more impressed with what is happening. With all the train derailments, there is more talk about safety of pipelines. The global leader in coating of pipelines. Also, have new technology called Flexsteel (?) for connecting oil/gas wells. This part of the business is growing at a phenomenal rate, but doesn’t think it is well appreciated.

He is a believer in pipelines. Provide protective coatings for pipelines. They also do rehabilitation work. They fulfilled some contracts and are waiting for more to come through and that is why it is down right now.

Had its challenges with shareholder issues and did a good job with this. There is some Selling of the name right now but in terms of looking forward to the next year, she likes companies that are involved in the infrastructure build-out in the energy patch and thinks this one will do okay. Prefers things like Horizon North Logistics (HNL-T) where you have not just exposure to oil.

Did a very good job in the past and has grown revenues very well. Just sold an asset in Brazil, which was a little disappointing in terms of what they received. Tried to sell the company which disappointed investors. Could be some tax loss selling in this name right now. This is one that you could buy realizing that there is some money that is stranded in there. Balance sheet has deteriorated a little bit. Pipelines not only need to be built, but need to be replaced and fixed.

This has dividend growth potential. Low yield at about 1.5%. Paid and extra dividend this year. Earnings were in line with what was expected, however, this stock basically trades off their order book and the order book is on the way down. Well managed company and has a good balance sheet. Good dividend record.

Great Canadian company. It seemed it would get taken over, but that is over. He would want to buy the stock $5 cheaper. It has just as much a chance of going down $5 from here as up $10.

(Market Call Minute.) Represents some pretty decent value. One concern is that their back log is declining, but if you have a longer-term view, it has good margins and is a good business.

Oil services is a great sector from time to time. He is not sure why the stock broke. If you get into the last 12 month lows and then get some action you could have some confidence.

Global footprint. Seeing big growth in other countries, high margin. Pipelines are aging and these guys coat them. A good entry point for a longer term investment. Infrastructure build globally is here. They have a large presence overseas.

One of his favorites. 5-10% of the market. Technological leaders. Thinks it is a great story going forward 3-5 years.

Dividend has been growing. Had a nice rally and then gave it back. Longer term it is a nice long term play on the service sector, given it is oil and gas. Good growth vehicle with a good backlog. It’s a bit more aggressive on the dividend growth side of things.