Stephen Groff ZCL Composites Inc. ZCL-T COMMENT Mar 15, 2017

(A Top Pick Oct 19/16. Up 29%.) Underground gas tanks for gas stations, as well as water tanks. They have a nonpolluting, environmentally friendly substance, which can be monitored. Still a Buy.

(A Top Pick March 27/17. Down 17%.) They've had a problematic time hitting their earnings estimates, and investors have been really, really frustrated about the lack of growth. This year, they had a bad 1st half and said things would be better in the 2nd half. It started to get better, and then rolled over again. A nice little company, but they do need better execution, and he would like to see better growth going forward. Has a nice market share and a good product and good customers. They just need a bit better performance in terms of consistency.

Fluid storage tanks for the oil sector. Fundamentally, the balance sheet looks pretty good. However, they recently had a quarter that wasn't good. They missed their targets. Their revenue outlook didn't have much positive going on. Also, the CEO is retiring. He doesn't see a whole lot to like in the short and medium term. He would move on from this stock and return when the outlook improves.

They make fiber glass tanks for gas stations. There is a growth story here as the replacement cycle is strong now replacing the concrete tanks out. Owned it a while back. They struggle a little lately with some large clients pushing back orders. (Analysts’ price target is $13.5)

Reports on Mar 7 so hold off until then. Last quarter was surprisingly weak. They have a 10% revenue and dividend growth target but had to hold off on that target. Put it on a watch list until they report and then re-evaluate.

The stock is priced at 16 times earnings, has a good dividend and is sitting on $25 million in cash. They had a recent earnings stumble, but if you buy it for income you will do well as the balance sheet looks good. Keep holding. Yield 4.5%.

The stock is priced at 16 times earnings, has a good dividend and is sitting on $25 million in cash. They had a recent earnings stumble, but if you buy it for income you will do well as the balance sheet looks good. Keep holding. Yield 4.5%.