Newalta Corp (NAL-T)

We are still not getting cash flows into the energy market. The good news is that they are still here. A lot of service companies did not make it. If we can just keep going for 6-12 months more you will see the service sector revived.

Has no yield and he is a yield investor. Has a highly levered balance sheet. Good company. They clean up wastewater around the rigs. While he thinks we are out of the woods in the energy space, you never know what could happen. In a highly levered company like this, you can get your lines pulled. He would prefer Secure Energy Services (SES-T).

A year ago they sold their industrial division, and are now pretty much leveraged to oil/gas waste recycling. Timing wasn’t great. The issue is more of a macro issue rather than company specific. He does believe oil will rebound, but even at a $50-$60, activity level is going to be pretty low and their business will be pretty depressed. Doesn’t see anything in the short term that will get the stock up.

We broke down after an uptrend. We have had an A, B, C correction. The low is being supported by increased volume.

(Top Pick Dec 16/14, Down 75.93%) They are being booted out of the index tomorrow. He just loaded up on this one and averaged down. Next year will be the low point and it will then be a top performer. Now is the time to buy. There are great margins. They are cutting costs and doing all the right things.

Oil and Gas. One of the biggest recyclers of waste in the business. They clean up tailing ponds. Very little business is tied to the price of oil. Stock is really beaten up. Good short term upside. To the $19s.

Doing a corporate action. Trying to sell a division to generate cash to pay down debt and to get into more growth opportunities in the energy patch.

This is in the business of servicing and cleaning at the well head. Largely exposed to the oil sands, which is a positive. There are a couple of key risks. 1.) They are making a big push into the US and there are always risks when Canadian companies make that leap. 2.) Only about 11% of their forward revenues are contracted so their numbers can be a little bit lumpy.

(Top Pick Oct 14/11, Up 24.10% Total Return) It is off his radar right now and would not hold it right now.