Peter BriegerZenon EnvironmentalZEN.TODON'T BUYJan 13, 2005
Outlook is terrific. One of the leading North American companies in the filtration of water. Has recently teamed upu with Maytag to get into the residential market. Very expensive at 28/29 X earnings. Thinly traded, so exiting could be difficult.
Great Canadian car story. Low emission and no noise. Well tied to EE Store (?) that is developing a novel energy storage device. They have the exclusive rights for the small car market.
The worried about this company based on the cockroach theory. There always seems to be a problem. Technology is great, but the execution by management has been quite weak.
Disappointed several quarters, mostly because of their cost structure. Has a rising backlog and their orders are good. Opened a lot of new plants that have been poorly operated. Management deals they had turned the corner. Wait for another quarter.
Canada's best example in terms of technology in water filtration treatment. Have 70% of the golbal membrane business. COsts are coming down dramatically and membrane technology is gaining market share. The trouble with Zenon is that it's missed quarters and the market is sceotical of management's ability. Needs some good quarters.
Specializes in water treatment facilities. A great company in the right area. Have stumbled recently because of production delays. Incredibly high priced at 30 X earnings and very thinly traded making it hard to trade.
If you look at almost any company in the US in the water technology business, they are shooting the lights out. This company does have an interesting business, but for some reason the stock price just can't get going. Wait for some additional strength in the share price.
Has been behaving fairly poorly in the market, partly because when it was up at the $22/25 level, it was pretty much out of any fair market value. Long term, you have to like the necessity of that kind of companies. If you are a holder, think of it as a long term play.
Likes the company a lot, but fairly priced right now. Starting to move into larger contracts. Becoming a very big global leader. A lot of larger companies would like to acquire Zenon, they're just not for sale.
A phenominal Canadian company with proprietory technology. Bullish on water purification. Would love to own it but too much future growth is already factored into the share price.