TOP PICK
3 divisions. 1) Oilfield camps, 2) oilfield tool rentals and 3) temporary workforce accommodation. Converting to a Corp. Very low payout ratio at about 31%. Good revenue. Good growth potential because of what is happening in the Horn River area in B.C. Just announced a partnership with an aboriginal group.
TOP PICK
Specializes in heavy oil software. Global clients. Management owns about 16%. No debt. Revenue is like an annuity in that it keeps coming in. 4.6% yield
TOP PICK
Provides overnight time sensitive air cargo in Canada. Trades at a cheap valuation. Management owns about 25%. Payout ratio of about 28% and expects a special dividend in Q4. 50% market share and gradually getting more business.
PAST TOP PICK
(A Top Pick Sept 19/08. Up 17.27%.) Very strong food distributor in Quebec and expanding into Ontario. Converted to a Corp. but still maintain the dividend.
PAST TOP PICK
(A Top Pick Sept 19/08. Up 18.28%.) Retail gas distribution in Western Canada but has expanded into Ontario. Well managed. Will probably acquire some of the Suncor (SU-T) gas stations that have to be divested.
PAST TOP PICK
(A Top Pick Sept 19/08. Down 13.91%.) Pension benefits consulting industry. Generates a lot of free cash flow. Acquired some tax losses so when they convert to a Corp. they won't be fully taxed. Still a Buy.
DON'T BUY
Think they'll have trouble maintaining the dividends. Have to negotiate their support agreement with their parent, Air Canada.
BUY
Originally did cheque printing but have supplemented this with various other businesses such as software for mortgage brokerages. Good management. Yielding of about 13% will probably be reduced when they convert to a Corp.
BUY
Focused on oil especially in Saskatchewan. Strong portfolio of assets.
BUY
Quality company but about 50/50 oil and gas. Although natural gas prices are not encouraging, over the long-term he is looking for much better pricing levels.
BUY
Pure oil play based on the Syncrude oil sands.
BUY
Quality company. Recently acquired more natural gas assets. Very good operators. After they convert to a Corp., dividends will be lower than current distributions.
COMMENT
Equally weighted between oil and natural gas. Historically have grown through acquisitions. Had difficulties with their capital efficiency ratios and maintaining production. Starting to turn around. Some interesting projects in some of the older legacy oilfields in Alberta. Starting to look at it more seriously.
COMMENT
Oil/gas trust that also have some midstream assets that process natural gas. Have properties in Canada and US. Have been selling properties to reduce their debt levels.
DON'T BUY
Strong company with a history of raising dividends. More expensive than its peers. Would like a better entry point.