Keith RichardsZCL Composites Inc.ZCL.TODON'T BUYNov 01, 2018

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%.

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.

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)

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.

(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.

(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.

This reports earnings on Aug 3^rd, so suggests that you wait for the earnings report. Very shareholder friendly. They’ve been solid capital allocators. Have been buying back shares and giving substantial dividend increases. A lot of gasoline storage tanks are being replaced, and they are benefiting from this rising tide. A name that he likes and it is not that expensive.

(Top Pick Apr 8/16, total return up 95.93%) Most people thought of it as being purely in the energy space because of plastic fuel tanks. It is plastics and packaging. He has other packaging companies now. There are so few great Canadian stocks to own that this one got away with itself. He feels it went too far too fast.

A long strategy. Fiber gas tanks. He thinks they still beat their street target. (Analysts’ target: $14.50).

(A Top Pick July 5/16. Up 61.9%.) A manufacturer of fiberglass tanks that are largely used at retail gas stations around North America. The company generates a lot of free cash flow. Has a very good moat around the business because of their commanding market share of about 60%. They keep paying special dividends.

Makes composite tanks for all sorts of industrial uses. Paid a special dividend this year and the stock ramped up until they reported their 1^st earnings, which was not very exciting. They have no debt. He wouldn’t expect a whole lot of dividend hikes after their very big dividend increase. The outlook is better than their 1^st quarter. The backlog is decent. He likes management. The stock is very viable. Dividend yield of 3.8%.