Michael Simpson, CFA
Strongco Corp
SQP-T
DON'T BUY
Feb 23, 2007
Rents heavy equipment. Have a relationship with Volvo. A lot of exposure to the West. Exposure in the forestry sector is not as favourable. Earnings are quite cyclical.
(A Top Pick Mar 16/06. Down 23.5%.) The government’s rule on trusts and the weakness in the oil/gas sector has hit this trust. 3rd quarter of 06 was weak. Looking for the 4th quarter results this week.
(A Top Pick Aug 8/06. Down 63%.) A dealer and servicer in heavy equipment. Have not delivered anything close to what they should have. Sold his holdings.
(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.
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.
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