ENTREC Corporation (ENT-T)

The question is can they get more of the top line growth to drop to the bottom line. He is a little uncertain about that. It’s worth keeping a close watch on. It would be more of a Hold than a Buy for him at this level. Eventually they’ll work through this, but doesn’t know that they will do it in one quarter or if it will take several quarters.

An interesting idea. They move massive equipment around. Wait 6 months. Then they will do well.

Loves the companies they acquired. Have positioned themselves very well for the LNG cycle and are well-positioned in the oil sands. Her problem with this is that it is a very volatile stock. They are now focused on bottom line per share growth. Keep your eye on the bottom line to see that they are growing it. Also, buy when it is out of favour.

The stock is range bound. They are waiting for management to have blow out numbers from all the acquisitions they have made. LNG and oil sands expansion. Needs institutional following.

Acquired several companies to accumulate some crane and heavy hauling equipment to focus on the oil sands and the LNG build out. Biggest risk is that they are not the only ones trying to capitalize on this market and cranes could come in from other parts of the world. However, having the early advantage of being established, they’ll be making better than average margins versus a crane operator, working on a condo. The real question is how long they can hold onto these margins but feels the stock should be able to get through another 25%-40% over the next 24 months.

Likes this whole space because he feels there is going to be a huge investment boom. He can see $200 billion in energy infrastructure projects over 5 years. There are also other similar companies that he would also buys such as Petrowest (PRW-T), Quanta (QR-X) or Chicago Bridge (CBI-N).

Has been trading this name around. Likes the overall story. Operating a crane is a very specialized business and this is one of the leaders in Alberta and British Columbia. Represents very good value here. Very cheap.

Heavy hauling and cranes in the oil sands and also have some fissilese (?) in Kitimat. Over the last 2 years, they have done about 12-13 acquisitions and paid for them with shares and cash, so there are a lot of small company management teams on the stock. Has been under a lot of pressure because of those management teams trying to get liquid on their positions. Company is in a sweet spot. Cheap at 3X EBITDA. There was a recent transaction where a private equity firm bought a crane company for 7X EBITDA, so there is a lot of inherent value here. Announcement that Suncor (SU-T) is going ahead with their $14 billion Fort Hills project in the oil sands basically signalled a bottom of oil sands spending. This company is perfectly positioned to take advantage of that. Also, they are going to buy back about 10% of their shares next year.

(Market Call Minute) Pulled back nicely. Mover of heavy equipment in Western Canada and will benefit as LNG and oil sands production increases.

Right in the heart of all that expansion with what is happening in the oil sands as well as LNG. It is a matter of them getting everything working. Stock has languished. His ranking could change in a quarter or so of good numbers.

Heavy haul and crane company. Operates predominantly in the oil sands. Growth by acquisition. Acquired 6 companies in the last year. The hang-up for some people is that it is in the oil sands. She feels that oil sands activity is in a trough but is looking for a lot more activity and this company should benefit. Trading at 3X EBITDA.

Based in Edmonton and are in the heavy duty infrastructure business. They own cranes, the trailers, etc. Business is very good. Their business plan doesn’t just rely on construction, but is also heavily geared towards maintenance. There is a long pipeline of work for them once construction starts to taper off. Stock has struggled because of the sentiment on heavy oil. Once the sentiment improves, the stock should start to do a lot better. You could see $2.50 in 12 months.

Has been under a little pressure. Thinks that it is a pause, not a stop. Heavy hauling and crane services. They increased their margins last quarter. Rolling up all these acquisitions well. Wait because there might be a seller out there. But it is a buy.