SECURE Waste Infrastructure Corp. (SES.TO)

A service company in oil and gas, providing a fairly essential service for them. Oil/gas companies will continue to use this for emulsion treatments. This is one of the more defensible franchises out there, which is why it trades at a premium. Long-term this is a good company and is probably undervalued, but in the short term he expects the stock will go down because it is expensive.

It is just below where it was in 2013. What’s going on in the energy sector outweighs the seasonality of the stock.

Have 2 primary business lines. One that treats oilfield waste and one that sells chemicals/drilling fluids. He likes this one. They’re going to cut back their CapX a bit. Well-run company. Expanding in North Dakota.

Spartan (SPE-T) or Secure Energy Services (SES-T)? Of the 2, he would prefer Spartan. Energy services will lag producers.

This is the only energy services stock that he owns. This business is a little bit different in that they actually deal with the waste that oil fields produce. With all the fracing that is being done, there is a volume of water being produced. This company manages and disposes of all that water. It typically doesn’t pull back very much so trades at a very high valuation. They continue to make acquisitions and grow organically.

(Market Call Minute) A fantastic company, but it is not cheap. If you get a pull back in pricing it would certainly be something to look at.

In a very interesting space. Waste and waste water handing business in drilling. You have to get the frack fluid out of the oil. Wells are getting older so the waste water volume goes up and more ENPs are outsourcing this. There is a huge opportunity in the US.

Chart is showing higher highs and higher lows so the trend is up. Any stock that is arcing up off its trend line can always have a corrective counter movement in the trend. If it pulls back a bit, he would probably buy it near the trend line at around $17 or so. Chart is extremely healthy and has been so since 2012.

Really likes this. A very good space to be in. They do all the water handling, recycling for the oil/gas industry. A very capital intensive business. There are only 3 players in Canada. Have very limited competition. Company does not look cheap on an EBITDA multiple but, if you look forward a couple of years, they have built some big facilities and it takes a while for cash flow to start coming through.

Phenomenal business to be in. They do environmental services for the energy space. Process waste water, waste oil, etc. Very capital intensive and lots of barriers to entry. There are only 3 major players in Canada. Trades at a pretty expensive multiple but they invest a lot of capital and it takes a couple of years for that capital to flow through to their cash flow. Their business should continue to do well.

(Top Pick Aug 28/12, Up 59.73%) He sold too early. It was a great story and great run and he did not expect it to start to pay a dividend this year. He is evaluating whether to get back into it. It is in the right space.

A dirty business but highly profitable dealing with fracking fluids. All need to be treated. SES provides this service. This is a play on increased drilling activity in Western Canada. Will generate a fair amount of cash over time. Thinks it will be a candidate for a dividend in 12-18 months.