Stockchase Opinions

Michael Simpson, CFAStrongco CorpSQP.TODON'T BUYFeb 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.
$14.70

Stock price when the opinion was issued

$3.14

As of Mar 23, 2020. Market Open.

merchandisinglodging
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

You might be interested:

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.
DON'T BUY
Was hit with the income trust tax. Had a bad quarter, and is smaller then their competition.
DON'T BUY
Dealer of heavy equipment. Worst stock in sector. Won’t trade substantially above book value. Doesn’t expect down/up side.
DON'T BUY
Dealer of heavy equipment. Worst stock in sector. Won’t trade substantially above book value. Doesn’t expect down/up side.
PAST TOP PICK
(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.
PAST TOP PICK
(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.
DON'T BUY
Is a bit of a "gong show" right now. Have some debt issues right now. hold rating of $8.50
PAST TOP PICK
Disappointed him greatly. Other companies in the same business are benefiting from the construction boom in Canada, but Strongco isn't.
HOLD
A group of businesses that sell and rent heavy equipment to the construction sector. Very economically sensitive. Not a big fan.
PAST TOP PICK
(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.
BUY
Wholesale dealer of heavy equipment. Because of the large expansion in Alberta, as well as strong mining in other provinces and infrastructure spending is going up, companies like Strongco (SQP.UN-T) and Wajax (WJX.UN-T) should do OK. Close to 100% payout.
BUY
Construction activity out west is pretty good.
PAST TOP PICK
(A Past Top Pick Aug 8/06. Down 45.1%.) Hit with 3 bad items in a row. 1) Analyst gave a negative report. 2) Government announcement on trusts 3) Results were a little disappointing. Giving a 19% yield. Still likes.
DON'T BUY
Rents/sells industrial equipment. Sold his holdings when he saw weakness in the Ontario economy about a year ago. Highly cyclical.