Wajax Corp (WJX.TO)

Has been a good company over time and is a cyclical business. Paying out 95-100% of their earnings as a dividend right now. 7%+. Some believe they should cut the dividend and pay down debt.

In a space that he likes. Chart shows a strong advance from early 2009 to early 2012 followed by an ABC corrective period. There is a bit of support at around $32 level. 6.5% dividend yield.

(Market Call Minute) Hammered due to resource exposure.

Cyclical and a tough business. You want to watch it carefully in terms of the cycles that its products are exposed to. Don’t pay a high multiple and make sure the payout ratio is not too high for these companies. This one has a policy of only 75% of earnings.

Stock price has been absolutely whacked in the last year as a distributor of capital equipment. Now maybe things start to improve. Dividend seems to be fairly safe. Have been fairly responsible in their willingness to cut. You might actually see it back to its previous peaks in the next 18 months.

Likes this. Has come off quite a bit, which is largely a reflection of the slowdown we have seen in mining and, to some extent, in the need for equipment in oil/gas industry as well. Extremely well run company. Still tends to pay out a fairly healthy dividend (6.6%). Thinks there will be a turnaround in the mining sector in the next business cycle and this would not be a bad entry point. For the shorter-term, this may be stalled out.

All of these companies are challenged by their customers in the oil, gas and metals and mining industries. Their customers are having problems and are cutting back on buying equipment. Outlook isn’t that great. Yield of about 6%-6.5% is maintainable. Payout ratio of about 70%. Don’t expect a dividend increase anytime soon.

(Market Call Minute.) Nice dividend but they are in a space that is very vulnerable to a commodity slowdown.

This one will really depend on demand for equipment in Western Canada. Starting to crawl its way back but doesn’t know that it is going to head straight back up from here. It may be a little while. We need to see more of the rotation to the late cyclicals and more of that China demand. Any sniff of that improving and this company will move.

Equipment distributor for mining/industrial products. Because of the weak mining industry in Canada they have been weak for the last few quarters. Management is also weak. Attractive dividend which might have to be cut if demand for their products is not improved. If the recovery continues, things should improve in Canada.

Just got their dividend and the stocks been pushed down a bit. Not seeing a lot of activity in the mining or oil sands and don't expect to see that for the rest of this year. A bit of a difficult time. If you think oil sands are going to pick up then it's good.

Had a lower dividend then expected and the stock dropped accordingly. End market demand for their products has gone down, so earnings went down and then dividends followed.

Look for stocks that have a gain in end market demand to see results by 2014.

Cut has already been done, so you are ok for the next 12 months.

Just hit a 52-week low so it peeked his interest. Has a very high dividend. Interesting company but the problem is it has a lot of exposure to Canada, a lot of exposure to oil sands, copper, gold mining, etc. Thinks the dividend is okay for the next couple of quarters. They really have to deliver in terms of backlog and have to deliver in terms of getting new orders. He feels there are better ideas in the cyclical commodity space.

Think they have been having some problems lately and missed on the last quarter. At a 52-week low. An interesting company. You need to get the momentum going in your favour.

Short. He has a negative view on the Canadian construction market. This company is a large distributor of heavy equipment. Prices on heavy equipment are falling quite dramatically. Missed on their 3^rd quarter results. Yield of 7.31%.