Strongco Corp (SQP.TO) Buy, Sell or Hold

Strongco Corp (SQP.TO)

3.14

-0.00 (0.00%)

as of Mar 23, 2020, 8:00:00 pm Market Open.

0 watching

DON'T BUY

Rents equipment for the construction/industrial sectors. Last quarter was a bit weak. Revenue was down 9% in the forestry sector of their business. Very cyclical.

PAST TOP PICK

(A Top Pick June 5/06. Down 6.6%.) There was a lot of selling of small trusts, because of fear of recession. Feels this will go back to $25 next year.

COMMENT

Recent report on their debt position was in error. Debt level is manageable at 1.2 X to cash flow.

TOP PICK

(A Top Pick June 5/06. Up 4.4%.) Heavy equipment provider. Earnings were up last quarter. Sales were up 50% in the western part of their business. Still paying taxes, but this will probably disappear next year.

TOP PICK

(A Top Pick Feb 15/06. Up 4.5%.) Thinks it will provide $2.50 of earnings this year. All of their earnings are free cash. Thinks distributions will continue to increase going forward.

PAST TOP PICK

(A Top Pick Feb 15/06. No change.) Distributors of heavy equipment machinery across Canada. Trailing earnings are roughly $1.87 and expect them to make $2.30/2.40 this year. Have added more at the $17/18 area.

BUY

Q: Compared with Wajax (WJX.UN-T). A: Has not moved up as much as Wajax, so is cheaper. Will probably trade at 7 X its earnings.

TOP PICK

Strongco Icome Fund provides heavy equipment for mining, construction and infrastructures in Canada. Company is doing well and is growing. Yield is 10%. It generates a lot of free cash flow. Predicts distribution will rise in 06. There are risks if the economy weakens and Canada goes into a recession. He bought this stock from $13-21.

TOP PICK

Their earnings and margins are growing. The multiple is reasonably low. Expect they will make $2.25/2.50 a share next year. Looking for them to increase distributions to above $2.

SELL

Has an excellent exposure, sort of a third derivative play on oil in that they provide a lot of heavy equipment and services to that sector. Would prefer Wajax (WJX.UN-T) which has more upside.

BUY

In the business of distributing heavy machinery. The strength in mining and energy is very positive for them. Prefers Wajax (WJX.UN-T).

WEAK BUY

Relatively high yield versus business trusts, but in a very cyclical business. Doesn't have an unblemished past. Very aggressive payout ratio at 90%.

WEAK BUY

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.

Showing 16 to 28 of 28 entries

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Strongco Corp (SQP.TO)