Stockchase Opinions

Lou Schizas Strongco Corp SQP-T WEAK BUY Dec 18, 2003

Up 194% year-to-date. Average daily volume is only 7900 shares. A liquidity and small market cap issue indicate a high risk profile. Getting higher margins on their sales and rentals.
$3.500

Stock price when the opinion was issued

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A group of businesses that sell and rent heavy equipment to the construction sector. Very economically sensitive. Not a big fan.
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Disappointed him greatly. Other companies in the same business are benefiting from the construction boom in Canada, but Strongco isn't.
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Is a bit of a "gong show" right now. Have some debt issues right now. hold rating of $8.50
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(A Top Pick Aug 8/06. Down 63.3%.) Heavy equipment dealer and servicer. Will benefit from infrastructure build up. Sold all his shares after the 2nd bad quarter.
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Dealer of heavy equipment. Worst stock in sector. Won’t trade substantially above book value. Doesn’t expect down/up side.
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Was hit with the income trust tax. Had a bad quarter, and is smaller then their competition.
DON'T BUY
Strongco (SQP-T) or Finning (FTT-T)? Finning has a better long-term track record. Both are good long-term holdings. Heavy equipment is very much driven by economic cycles but wouldn't be too excited at this time.