Petrowest Corp

Contractor that will get a lot of business from LNG. They can decide what contracts they will go for. It is a good little company that is growing nicely. You won’t know if they have good contracts for some time. It is a 5 year investment. They are probably the better of the group, however.

This is a contractor that is busy in northern BC. They have been riding the boom in Western Canada, in the energy sector in particular. Stock is getting beaten up pretty badly. It is probably going to bounce, but he wouldn’t be a buyer of any of these things right now, because you just don’t know how low they can go.

Based in BC and they do drill site preparation, road building and have leverage to LNG and Site ‘C’ which could get green lighted next month, and that could double the size of the company.

Would rate this as a Hold to a Buy. Likes the business longer term. Had a pretty good run over the last year, but it is in the right area. The biggest growth in Canada continues to be the Alberta, BC areas, primarily driven on the back of energy development. This company plays right into that as well as some infrastructure development support they do. Pretty economically dependent on the activity level out there, but the backdrop is pretty good. If there is a pullback, these guys will have a drop in demand. This isn’t a high margin business and a drop can really affect it. Prefers Enterprise Group (E-T).

This is really in the hub of the whole LNG oil service, and also the Site C dam project in BC. Management has advised that if they have a part of the Site C project, it would double their business. They provide construction services to the oil patch and have the largest fleet of Yellow Iron, large Caterpillar trucks, graders, etc. Pretty much at full capacity right now and have just made a couple of more acquisitions in the last week. Did a capital raise that was in such demand that it was 2X oversubscribed. Q2 results were slightly ahead of expectations and Q3 should blowout the quarter.

(Market Call Minute.) Likes this a lot. Had a huge run up. Pick away at this on days that it is off.

This and a couple of other smaller companies are oil/gas engineer contractors and doing lots of work in the oil/gas sector, particularly for the LNG sector. This one is well-managed and relatively small. Valuation is pretty attractive. Growth potential is very much there. It is viewed as the company with the most LNG potential. This is one of those companies that you may have to give a 5 year timeframe to, as they are long-term projects. Every once in a while these companies lose money on a fixed price contract, which you really have to watch out for. However, he thinks this is strong enough to continue, but he also thinks this sector is ripe for acquisitions.

Participating well in the uptrend in energy stocks. The stock might need a bit of a pull back here. The stock looks good otherwise.

Have a big presence up in NW BC with a ton of equipment in the region all the way out to the coast. Have things that can grade roads and devices that can mulch the trees. Have a good core business going. There is a big damn project that BC Hydro is working on. This gives you 2 big capital intensive projects unfolding, LNG and the Site C Dam. This company is right in the middle of all that. They will probably do North of 50 million EBITDA next year. He could see the stock going well north of $2.

Likes this. It has had such a big run that he has been lightening up. Probably a really good pure infrastructure play on the LNG buildout, but it is starting to price that in. Would prefer it at $1.20-$1.30.

This ranks very well for him. Great numbers from the last quarter. Looking out over the next 5-10 years, this company could be an absolute darling. There are so many projects that they are going to be bidding and working on that they will really be the marquee providers. If they get even one of those LNG projects, all of their equipment will be taken up, and they’ll have to buy more equipment. Any time it sells off a bit, you Buy. Could see it being $5-$6 in in 5 years. Excellent management and great earnings growth.

Big ramp up broke resistance line. From a technical line there is nothing wrong with this chart. Stop should be at $1 or so.

(Market Call Minute) This is the name to own for LNG. If you like the space it is worth owning.

Involved in pre-drilling and post completion oil services. Perfectly positioned for LNG operations in BC and northern Alberta. Stock had a nice little run and thinks that over the next 6-9 months, earnings are going to be quite strong and expects they are going to get the attention of the markets. A cheap way to play. Management has done a very good job and he is looking for earnings to accelerate over the next few quarters.

Q2 was a record quarter and Q3 was a good quarter also. Q1 will look good year-over-year because of the huge weather issue it had last year. Working on 2 large gravel crushing contracts in Alberta. Trading at 5X EBITDA, a great multiple to Buy a construction company on. They are doing work on LNG levered companies, giving you exposure to LNG.