Enterprise Group (E-T)

Has owned shares for a long term. Was a previous top pick. Will continue to own. Power division doing very well. Traditional oilfield services stock. Gas generator business very good. Expecting large growth going forward. 

The thing that strikes him about the chart is that it's gone parabolic. With stocks in the $2 range, technicals sometimes go out the window as the market begins to understand it. Thinks it's sustainable. Lots of support right around $1.60. 

No reason to sell, but could have a really big swing due to the size of the company.

Oil field services. Lots of respect for management. Tough business. Kept debt levels in check, bought back lots of stock. Electrifying well sites via natural gas instead of diesel (expensive and polluting). That decreases cost for customers. No dividend.

Fairly big move up this year, but still really attractive. Lots of runway. Increased revenue and earnings, really strong margins of around 40%. Trades around 7x.

E has doubled this year, bringing market cap to $91M. It remains cheap at 10X earnings. There has been no major news, but Q2 earnings were fine with EBITDA more than doubling and margins increasing. It got new coverage from Acumen Capital. It has leverage to large contracts. There has been some insider buying. With its small size and 35% insider ownership we do not want to underestimate its risks here, but its fundamentals look good, the balance sheet is OK and as small caps move towards $100M market cap they do tend to get more attention from investors. We would be OK owning a small position as part of an overall small cap allocation. 
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Excellent company that has great prospects. Very high margins (~55% gross margins). Rapidly growing power division with natural gas powered generators. Ability to grow revenue and profits looks excellent. Might be a takeout target - but stock is cheap until then. 

It is good value in the oil field services right now. It is a product driven company with very good margins. It rents generators to allow customers to power their sites with natural gas instead of diesel. This means costs and emissions are down. It has a 50 million market cap with management owning about 40%. There is little or no analyst coverage yet. He easily sees an upside over the next year of 50 to 100%.     Buy 1  Hold 0  Sell 0

He’s been picking away at it. Great job of paying down debt to zero. A nimble little oil patch company. Business is picking up. Pretty cheap valuation, so you can accumulate it here. Something will happen, like the oil patch lighting up again. A rise won’t take 2 years, but perhaps in the next 6 months.

An oilfield services smaller player that really got hurt during the downturn. A nice little group of companies based in Western Canada. It is just behaving like most oil/gas stocks, but it is a services company.

This company was having issues, where they had so much business, they were renting a lot of equipment which put pressure on their margins. Raised some money and bought a bunch of new equipment, pretty much at the worst time possible. As a consequence they now have more operational leverage than they had before, and he expects equipment is not being used very well. Doesn’t see any big rush to get back into this name.

Still has a small position in this. This has been a painful holding, largely because it has been associated with the oil/gas sector. Currently trading at about 5X PE and 3.5X 2016 earnings, so it is very, very cheap, but is not sure about the catalyst to get this going in this environment. You can think of this as a service provider to the pipelines. Have 2 divisions. Calgary Tunnelling which provides some of the tunnelling services that are necessary for pipelines, and Arctic Therm, which heats up the pipeline during construction, giving a much better weld. They also do work for utilities.

A supply services company associated with the oil/gas business. Recent quarter was a bit of a disappointment to the street and the stock dropped back. Probably in the penalty box until 1) the wind is at their back from a sector standpoint and 2) they post a quarter that surprises the street, or at least meet its expectations. He prefers Petrowest (PRW-T).

Keep in mind that when you are looking at low-priced stocks, they are a little more subject to being whipped around. Had an uptrend from 2012 and broke down through this earlier this year. Levels of support at around $0.90 have been broken. Not a very good picture.

Very cheaply valued and views this as a nice play on pipeline construction. They have a business called Arctic Therm which he thinks is the jewel of the business. Also, have Calgary Tunnelling. Feels the volatility in the stock is unjustified.

He is very impressed with the team. They are pretty good at integrating businesses. It is an LNG play, but goes beyond it. Recently acquired a directional drilling piping company. Likes their ability to integrate.

This company has done very well. Was very small and consolidated a series of oil service companies. They are geared to both the oil sands and pipeline construction. Stock is still trading very cheaply and earnings could grow very quickly over the next couple of years. The challenge over the last little bit has been that they grew very quickly through acquisition, and management needs to focus more on internal execution. Thinks it is just a transition they are going through right now. Owns warrants on this.