Toromont Industries

TIH-T

Has the ability to sustain itself after the business cycle, because of its presence in Ontario. Expects government will spend a great deal on infrastructure.

The model price is $32.24, a 34% positive differential. If it qualified for his portfolios, he would buy it.

Big infrastructure needs should keep propelling both companies forward. Slightly expensive. Trades at 17 X next year's earnings. Would prefer it under $15.

Caterpillar equipment dealer. Prefers Finning (FTT-T). Very well-run company and has always traded at a premium multiple but there has been some contraction in that. Quality name.

Toromont Industries has two key areas that they work in. One is caterpillar dealerships in Ont., Man. and N. Canada. The other is in gas compressors. He likes this company because it has steady growth, it is well managed, always traded at a premium and is well diversified. Sees continued growth. Not a big large cap company. Bought March 10 at $25.45. He will continue to add to it as well.

Caterpillar dealer. Has done fairly well. A leverage play on the resources boom.

A terrific looking chart. Good long uptrend. There is no reason to sell.

In a number of industries, but the one it's best known for is its Caterpillar Equipment distributorship, especially in eastern Canada. With the resource/mining boom, Caterpiller has been in demand. Well run company. Has become more cyclical.

(A Top Pick Aug 23/04. Up 26%.) Still likes. Has moved very nicely and probably not cheap. Has solid management, so likes it for the long term. 2 areas of growth, Caterpillar dealership (spare parts only) and gas compression. Would buy more on any weakness.

A good play on mining. Have the Voisey's Bay contract. They also have a compression division for refrigeration for gas installations which has been the major driver of their earnings growth. Pays a dividend.

Their main line of business is distibutorship of the Caterpillar tractor which is doing very well. Even if sales should drop, there is still sales of parts. The 2nd part of their business is selling gas compression which is the real growth driver to their business. Can be cyclical in the short term, so yoiu have to take a long term point of view.

Now in an uptrend and above the 200 day moving average. You have everything going for you.

Has superb management which takes a long term view to corporate planning and is concerned about earnings per share and ROE. Their gas compression business is going to be the real driver.

A lot of the growth is going to come from the compression business which is growing very rapidly. Conservative business management. Good allocation of capital. Cyclical.

Very solid company. New projects are coming in.