Wajax Corp (WJX.TO)

A lot of exposure indirectly to commodities in the oil sands and mining. With the whole Keystone issue and concerns around some of the CapX in the oil sands slowing down he is on the sidelines with some of these names.

Believes the 8.1% dividend is sustainable as long as the economy bumps along. They have the cash flow to pay the dividend.

Not a very glamorous company but a “Steady Eddie”. Involved in all kinds of industrial stuff. Not expensive but he doesn’t find it a particularly interesting company. If he owned, the next time it popped up in price, he would take profits. 7.4% dividend yield.

Equipment company with about 50% revenues coming from heavy trucks, 25% from industrial components and 25% from power systems. A play on economic growth in Canada. Purchased some big trucks on spec that they are planning on selling in 2013, which is a little bit concerning. Very clean balance sheet EBITDA is 0.5X. Management has publicly said that as long as the EBITDA is lower than 1.5-2, they will use debt to sustain the dividend.

(Market Call Minute) The distribution of capital equipment used in mining and infrastructure continues to be a growth area.

The dividend of about 7% is probably at risk. This stock has not done that great recently because the economy is slowing down. They are dependent on construction and the economy.

Company is a little more cautious on 2^nd half guidance and some softening power systems sales. However, order quoting activity is still pretty robust. Pretty expensive valuation trading at 7.5X to EBITDA versus Finning (FTT-T) at 6.2. Payout ratios are fine for 2012-2013. You are really buying this for yield and if there is “risk on” in the market this name could go higher.

Equipment distributor for construction and mining. Has a very attractive yield. Longer-term, she is positive on mining and construction.

Very effective company and to see them hold up as well as they have in this environment, is good. Looks like it is selling at a bit of a premium but the 6.8% dividend is very attractive.