Wajax Corp (WJX-T)

(Market Call Minute.) Nice dividend but they are in a space that is very vulnerable to a commodity slowdown.

This one will really depend on demand for equipment in Western Canada. Starting to crawl its way back but doesn’t know that it is going to head straight back up from here. It may be a little while. We need to see more of the rotation to the late cyclicals and more of that China demand. Any sniff of that improving and this company will move.

Equipment distributor for mining/industrial products. Because of the weak mining industry in Canada they have been weak for the last few quarters. Management is also weak. Attractive dividend which might have to be cut if demand for their products is not improved. If the recovery continues, things should improve in Canada.

Just got their dividend and the stocks been pushed down a bit. Not seeing a lot of activity in the mining or oil sands and don't expect to see that for the rest of this year. A bit of a difficult time. If you think oil sands are going to pick up then it's good.

Had a lower dividend then expected and the stock dropped accordingly. End market demand for their products has gone down, so earnings went down and then dividends followed.

Look for stocks that have a gain in end market demand to see results by 2014.

Cut has already been done, so you are ok for the next 12 months.

Just hit a 52-week low so it peeked his interest. Has a very high dividend. Interesting company but the problem is it has a lot of exposure to Canada, a lot of exposure to oil sands, copper, gold mining, etc. Thinks the dividend is okay for the next couple of quarters. They really have to deliver in terms of backlog and have to deliver in terms of getting new orders. He feels there are better ideas in the cyclical commodity space.

Think they have been having some problems lately and missed on the last quarter. At a 52-week low. An interesting company. You need to get the momentum going in your favour.

Short. He has a negative view on the Canadian construction market. This company is a large distributor of heavy equipment. Prices on heavy equipment are falling quite dramatically. Missed on their 3^rd quarter results. Yield of 7.31%.

A lot of exposure indirectly to commodities in the oil sands and mining. With the whole Keystone issue and concerns around some of the CapX in the oil sands slowing down he is on the sidelines with some of these names.

Believes the 8.1% dividend is sustainable as long as the economy bumps along. They have the cash flow to pay the dividend.

Not a very glamorous company but a “Steady Eddie”. Involved in all kinds of industrial stuff. Not expensive but he doesn’t find it a particularly interesting company. If he owned, the next time it popped up in price, he would take profits. 7.4% dividend yield.

Equipment company with about 50% revenues coming from heavy trucks, 25% from industrial components and 25% from power systems. A play on economic growth in Canada. Purchased some big trucks on spec that they are planning on selling in 2013, which is a little bit concerning. Very clean balance sheet EBITDA is 0.5X. Management has publicly said that as long as the EBITDA is lower than 1.5-2, they will use debt to sustain the dividend.

(Market Call Minute) The distribution of capital equipment used in mining and infrastructure continues to be a growth area.

The dividend of about 7% is probably at risk. This stock has not done that great recently because the economy is slowing down. They are dependent on construction and the economy.

Company is a little more cautious on 2^nd half guidance and some softening power systems sales. However, order quoting activity is still pretty robust. Pretty expensive valuation trading at 7.5X to EBITDA versus Finning (FTT-T) at 6.2. Payout ratios are fine for 2012-2013. You are really buying this for yield and if there is “risk on” in the market this name could go higher.