ZCL Composites Inc. (ZCL.TO)

He likes the business model which makes a lot of sense. They make composite carbon fibre tanks that are replacements in gas stations for existing metal tanks. A nice growth business with a clear profile to it. It has had a great run. He will be meeting with management in the near term.

The largest North American manufacturer of fiberglass underground fuel tanks for gas stations. A huge free cash flow generator. They just paid another special dividend after reporting Q4 numbers, as well as raising their common dividend again. They effectively generate more cash than they really know what to do with. A fantastic name to own for an income oriented investor.

An interesting business. They basically make underground fiberglass tanks. A lot are used to replace the metal tanks at gas stations. They don’t have a lot of competition, and they generate nice cash flow. The stock is not cheap, but also not super expensive. If it was in the $13 range, he would certainly look at it.

Underground tanks for storing liquids. Recently increased dividends by 50% and paid a special dividend on top of that. They are in a sweet spot right now where there is a turn over of a lot of underground tanks. Valuation is still pretty reasonable at about 14X next year’s earnings. He really likes this company.

Fiber reinforced underground plastic fuel storage tanks. They are moving into water tanks. There will be growth in the water area. (Analysts’ target: $14.00).

Water tanks and tanks for gas stations. There is a big replacement cycle going on. Their dividend went up 50% this quarter and they are paying a special dividend. (Analysts’ target: $14.00).

Underground tanks and storage solutions. He doesn’t follow it closely. These things come in big waves, and right now they are on a bit of a roll. Feels it is fully valued here.

Hasn’t followed this closely. Make sure you understand the cyclicality. They have the water business and the oil sands business. The business is very much tied to CapX, and you have to really understand those cycles.

(A Top Pick July 5/16. Up 49%.) The largest manufacturer of gasoline fuel tanks for gas stations. He loves this. They just announced another special dividend as well as having raised their regular dividend. This company generates more cash than they know what to do with.

Manufactures fiberglass gasoline storage tanks to be installed beneath gas stations, to replace the stainless-steel ones that are rusting away. The stock still looks great.

This has been a cheap stock for quite some time, and finally the street and the rest of the market has realized the value. They have deployed their capital accretively and organic growth is happening. However, he feels value has been overdone at this point, and would be cautious.

(Market Call Minute.) An outstanding Edmonton-based company. A leader in the underground fibre glass storage tank market. Below $10, he would be a strong buyer.

A business he likes because it is an environmental play. They sell fibre glass storage units for gas stations. The big play here is that old storage tanks were installed 20-30 years ago, and are made out of steel, and which are leaking into water tables. There is no debt on the balance sheet. Generates over 8% free cash flow yield. It made so much cash last year, that they had to pay a special distribution.

He thinks there will be a special dividend in the first half of this year. They generate excess free cash flow. He likes the business. It is a long term hold for him.

Manufactures specialized tanks, especially for petroleum products. A bit of an infrastructure play. When they dig up and replace buildings, they need to replace the tanks that hold water and petroleum. They’ve restructured their business and are focusing on core strengths right now. Has a long-term trend of increasing dividends, and a long-term trend of buying back shares. This impacts on the momentum of the share price. Even after the recent move, it is cheap on most metrics. He likes this.