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ROC is very low, but he thinks it is going to improve because oil/gas prices have been stable. This has had a decent track record of good ROC, so he would expect it to return to normal. If he puts a normal rate of return on it, it shows pretty good upside. He could see the stock going past $10, maybe $11, and even $12.

A great company. As a Canadian, if you have a normal portfolio, you are going to have some utilities, and this could definitely be one of them. His calculation of the cash payout ratio comes out to only 30%, which is actually low. From that perspective, they can continue their dividend. He would like to see their working capital position get a little stronger.

Rates this as a low to medium risk stock. This is a lot like Suncor (SU-T), only a US version. Very consistent return on invested capital, fully integrated. It looks undervalued. 3.7% dividend yield. (Analysts’ price target is $124.13.)

He considers this a medium risk company. He finds any of the service companies riskier, and have lagged, versus the producers. When you are in the services game, you are the last in line when things are good, and 1^st in line when things get bad. They are just starting to get an upswing after the energy prices improved. This is at its all-time low in terms of return on invested capital, but they have a tremendous track record. It is also undervalued. Dividend yield of 5.03%. (Analysts’ price target is $9.81.)

This is considered as a medium risk company. An auto parts company, and has gotten beaten up just from peak auto speculation. Undervalued and a great opportunity. Dividend yield of 0.66%. (Analysts’ price target is $62.94.)