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BUY

Always put in opportunistic bids. Look at the stock chart and if you can see a pattern where it routinely goes up and then drops 2%-3%, put in some layered bids in such as $9.15-$9.20-$9.40 if you really want to buy it. This name really has some upside. Not just an oilsands provider. Have the opportunity to build camps in northern BC. If this LNG boom proves true, as he expects it will, they will have a lot of work to do ahead.

Transportation
BUY

Basically they acquire underground infrastructure subsidiaries, companies that do hydrovacing. Their specialty is heating up pipelines before installation. Well-positioned to benefit from what is happening out West, not just in terms of big megaprojects, but also new housing developments. Just closed a very big financing and are going to make a very big acquisition that looks very interesting to him.

oil / gas
BUY

Mortgages. They don’t underwrite them themselves but are basically an agent. Do okay when they originate a mortgage, but do even better when they refinance it. Typically they refinance after 5 years. Have eaten up a lot of market share in 5 years. Refinancing is just starting now, that is, the business they wrote in 2008 is now starting to be rewritten and every year it gets bigger and bigger. What you want to be cautious about is how long can the housing market continue. If interest rates stay low, they should be okay. Have some hidden assets that are worth anywhere from $.30-$.80 a share and they are going to dispose of them and will probably pay a special dividend or redeploy the capital elsewhere.

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COMMENT

He no longer covers this. Something like a Mosaic Capital (M-X) in that they buy businesses and leave management in place and just get the dividend and do capital allocation. Started off in the airline space doing ambulatory airlines, basically up north doing evacuations. A good business because government pays you, pays well and pays on time. They took the cash and made other acquisitions and some of them have not worked out that well. That’s the risk with these things. This one is a “wait and see” for him.

Transportation & Environmental Services
BUY

(Market Call Minute.) Feels that the replacement cycle in cars is continuing. Making some internal changes which should improve profits.

Automotive
SELL

(Market Call Minute.) Doesn’t like the model of incubating a bunch of tech companies. It has just never worked.

INDUSTRIAL PRODUCTS
DON'T BUY

(Market Call Minute.) This one will come back, but it is too early.

electrical / electronic