Michael Simpson, CFA Trimac Transportation TMA-T COMMENT Jan 16, 2009

Basically a trucker in the oil patch. Good stable company. Fairly well-managed. Too small for his portfolio.

11 or 12 times earnings and growth rate in the past was 50%. Will benefit from better oil prices. Business good. Lots of repeat business. 50% owned by management. Dividend is 4% with room to raise it. Could be an acquisition candidate.

Chart shows the stock has done very well this year, but has broken its up trend line, so you have to be a little bit careful. We see a lot of the transportation sector do well in the last year or so, but the drop is a little bit of a negative sign. We are not in the seasonal period for the transportation sector. Obviously lower oil prices help that. He would be really interested at around $5.75-$6.

(A Top Pick Oct 27/14. Down 22.36%.) He was under the impression that the Canadian economy was going to be fine and oil prices were going to be low. Also, following the Constrans takeover he thought there would be much more interest in the company. Unfortunately, the Canadian economy rolled over a little bit, and as a trucker, you can’t avoid being hit by the economy. It has a decent dividend and a great valuation, but he does not have it in any of his model portfolios.