STOCKCHASE

Started in propane and then took on more. Debt went up when they went on an acquisition spree in the US. Is higher than his threshold for debt. There might be a problem 5 years from now.

2010-02-23

DON'T BUY

14.050

Barry Schwarrtz

(Market Call Minute) Ugly balance sheet.

2010-02-22

TOP PICK

13.580

Derek Webb, CFA

Propane distributor with a huge yield of over 10%.

2010-02-11

HOLD

13.780

Dividend should be sustainable. This is a good time to hold it because propane tends to do well in the wintertime. Had some problems earlier on and didn't have a focused management team but looking pretty good right now.

2009-12-11

TOP PICK

13.560

8.25% corporate bond due October 27/16. More debt than he likes with senior debt at 2.4X EBITDA, so prefers bonds to the equity.

2009-12-03

BUY

13.160

Prakash Hariharan

Here is a company that straightened up their act. Propane distribution business has been weak. But they have a whole bunch of construction chemicals they deal in. He thinks it still has some upside.

2009-12-01

BUY

12.820

Ben Cheng

Almost 13% dividend, which should be sustainable.

2009-11-20

Comment

12.630

Robert McWhirter

Just made a purchase to acquire some tax pools. This is a huge advantage for a transition from a trust and was done at a very good price.

2009-11-17

BUY

11.610

Prakash Hariharan

Likes where it is right now. The stock is interesting. It could be a consolidator. 14% yield is safe. It is trading-distressed.

2009-09-29

DON'T BUY

11.570

Went into the pulp bleach chemicals just before the pulp industry went into hard times. Then went into building products just before the building industry fell to pieces. Have maintained a dividend even though they are now a Corporation. If the building industry in the US picks up that would be helpful.

2009-09-23

DON'T BUY

11.520

Glenn MacNeill, P.Eng.

Balance sheet is just okay. Dividend is more a function of the cash flow. Complicated business mixture in that they are selling to the pulp and paper industry and construction industry. There are other income generating companies that he would prefer.

2009-09-18

Comment

11.550

Stan Wong

Very volatile. Longer term it might be something to look at but more of a trading name. 14% yield

2009-09-17

HOLD

10.570

Management change is positive. Got rid of some of their businesses. Bought a shell company that had tax pools. Reasonable payout.

2009-02-27

Comment

9.700

Proposing to buy $40 million of Ballard Power's $800 million tax loss and doing a reverse takeover to convert to a corporation. Believes there is enough tax losses to last several years and should be able to keep their level of distribution. If there is a cold winter, their propane business should recover.

2008-11-20

DON'T BUY

12.620

Has had a troubled past for 2 years. Has been much more stable lately. Made a deal with Ballard (BLD-T), which is basically a tax driven deal by buying tax losses, which will give them shelter as they move to incorporate. He is waiting until after the conversion date before considering.

2008-11-06

DON'T BUY

13.000

4 main divisions, propane, pulp chemicals, energy management and construction materials. Q2 was okay with a lot of strength coming from the pulp chemicals. Has been de-levering the balance sheet. Debt to cash flow is 3X, which is too much for him.

2008-09-19

DON'T BUY

12.270

Results where a bit soft in Q1. Making progress in paying down debt and lowering their payout ratio. Before buying they would have to make further progress on reducing their debt level.

2008-05-14

BUY on WEAKNESS

13.730

Looks like their turn around plan is working. Expects Q1 to be quite good because of the cold winter. Have some businesses tied to home building, which hasn’t been as bad as he thought and have been manageable. Natural gas marketing is starting to get some market share in Ontario. Debt is higher than he likes, but they are getting good earnings. Buy in the low $13’s.

2008-04-28

DON'T BUY

12.180

12.8% yield and distribution appears to be sustainable. Went through a period where they expanded too much with a little too much leverage and they had to shrink the number of businesses they were in to pay down debt. Doesn't qualify for his balance sheet ratios.

2008-02-26

DON'T BUY

11.260

Sold most of his holdings near its highs. Original CEO, one of the best in the trusts, is back in the saddle and focused on the business. This won't be a high yield investment.

2008-01-29

BUY

13.700

Has done really well lately. Has a very good deal.

2007-08-08

HOLD

14.710

Ian Nakamoto

Has had a really rough ride and had to cut its distributions. They are now in a reorganization mode. Ranks quite well in his quantitative screens.

2007-05-14

SELL

12.980

Andrew Guy, CFA

In the process of turning itself around. They grew too quickly and took on too much debt. Not trying to sell one of their businesses. Given the track record, he's not sure that he would give them the benefit of the doubt.

2007-04-09

HOLD

12.880

Neil Wickham

Did a lot of acquisitions in the past and some of them turned out to be not very good. Have spun off a couple of them. Payout ratio of about 90%. Earnings are starting to improve, so distribution is probably safe. Still have a lot of work to do.

2007-03-20

DON'T BUY

12.880

Debt levels and payout ratios were too high. They are starting to address that by selling business lines to pay down debt. Still not comfortable with the debt levels.

2007-03-20

DON'T BUY

12.220

Originally came out as a propane company, and then diversified into pulp chemicals, aluminum fabrication, construction materials, etc. Sold their aluminum. Debt level is far too high. Could be a distribution cut.

2007-02-23

BUY

11.720

Chris Rankin, MBA, CFA

Sold off their aluminum asset, which was a positive. They now have reasonable leverage. Chemical division is very reliant on the Ontario power market for supply. There has been a reduction in wholesale rates, which gives them underlying support. Thinks it will do very well here.

2007-02-09

SELL

11.940

Andrew Guy, CFA

Started out very well, but management got too diversified. They are trying to sell off some of their poorer assets and refocus on their original business. Propane is a slowly declining business.

2007-02-08

SELL

11.430

Have a number of operational issues. Sold their aluminum business, which allowed them to reduce their debt. Still face a number of challenges, particularly their propane business. Their other 2 businesses are the third toward the housing sector.

2007-02-02

HOLD

11.250

Robert Floyd

Industrial trusts are probably in a better position than some of the commodity trusts. This one has been beaten down. If you own it, continue to hold.

2007-01-19

SELL

10.800

There are a lot of challenges in being a trust. Had a failed conglomerate strategy. Has turned around.

2007-01-05

SELL

10.900

David Cockfield

Still haven’t divested themselves of some of those companies they bought and the propane business doesn’t seem to be very great.

2006-12-27

PAST TOP PICK

13.640

(A Top Pick Oct 24/05. Down 45%.) Cut the distribution twice in the spring. Sold after the first cut. Stumbled badly on acquisitions. Don't buy until you see a couple of more quarters.

2006-10-23

BUY

12.500

The company had to cut distribution twice. Diminished confidence in trust.

2006-09-28

DON'T BUY

12.280

Chris Rankin, MBA, CFA

It is not a good time to enter. Company is trying to sell J.W. Alluminum. It is a risky time to enter.

2006-09-25

BUY

12.250

David Taylor, MBA, CFA

The leader in propane distribution. You are paying 6.5 X net adjusted cash flow whose business was depressed last year because of a mild winter. Will sell their aluminum business. Believes the distribution is safe.

2006-09-12

DON'T BUY

11.960

Paul Gardner, CFA

A disaster. Management decided to diversify into chemical businesses, potassium products as well as wall/ceiling products. Cut their distributions twice. Expect they will have to reorganise.

2006-09-05

SELL

10.870

Fairly valued at this point. There is still a significant amount of risk. There are significant corporate actions that need to be resolved. Have had 2 distribution cuts in the last year.

2006-08-04

DON'T BUY

10.920

Bruce Hartman

Announced they were selling their aluminum division which is a positive step. Still feels they are involved in too many business lines.

2006-07-14

SELL

10.980

Ran into difficulty earlier this year and cut their distributions and announced a restructuring. They are planning on selling their cold rolled aluminum division and apply the proceeds towards debt. CEO and CFO are being changed. Debt levels and payout ratio are too high.

2006-07-13

HOLD

10.980

David Cockfield

Had a spectacular run as a propane distributor but began to see weakness in the propane market and diversified and ran into problems. Had a significant downturn in revenue and are talking about un-diversifying. If the stock moved up into the mid-teens, he would sell.

2006-07-13

DON'T BUY

10.820

Has several problems. Its core business, propane, is in structural decline. Have also gone off in 4/5 different directions. Their debt levels are up near their covenants. Not a pretty picture.

2006-06-28

DON'T BUY

11.670

Glenn MacNeill, P.Eng.

Have had a negative outlook on this for some time. Have a virtual monopoly on the distribution of propane. Usage of propane is down. Has also gone into other areas and he prefers one industry.

2006-06-16

BUY

10.990

David Taylor, MBA, CFA

Looks very interesting. Had dropped from $30 to $10 and at $10.25 he bought for his hedge fund. Trades at about 6.5 X enterprise value EBITDA. Absolutely dirt-cheap and if they sell some of their non-propane assets the market will realise that the underlying asset is very strong.

2006-06-14

DON'T BUY

12.030

Ravi Sood

Had to cut distributions. No sure that it makes much sense for it to be trading higher.

2006-05-26

DON'T BUY

10.370

A high cost producer of pulp chemicals. It's in a market that is contracting. What you want in this circumstance is the low cost producer which would be Canexus (CUS.UN-T).

2006-05-12

SELL

10.140

In the last year or so, they have started to diversify outside of the propane business. Some of those are running into trouble, especially the pulp chemical business. The war in winter hurt their propane business. Have cut distributions a couple of times the last one being 30%.

2006-05-05

DON'T BUY

10.880

Was blindsided by their second cut in distributions. This is absolutely hammered the stock. They have a couple of businesses that are not shining at the moment. These include propane and pulp chemicals. Sold all his holdings. Expect its dead money for 2 or 3 quarters.

2006-05-02

SELL

11.490

A bit of a disappointment. Had some concerns about their underlying operating businesses. They have cut distributions for the second time. It will continue having some challenges.

2006-04-26

WAIT

16.610

Very diversified holdings but were hard hit by the propane distribution portion of the business. Hasn’t been helped by the warn winters we have been experiencing. Valuation wise, it is looking relatively attractive, but wait until the Q1 results are released when it is expected the price will drop further and that would be a reasonable time to get in.

2006-04-21

DON'T BUY

16.660

Share price has been almost cut in half. Propane business has slowed. Acquired businesses in other areas that are not as high quality. Payout ratio is now 100%. No catalyst to make it go up in the near term.

2006-04-07

HOLD

16.500

Norman Levine

Management has moved the company from being solely propane to a number of different companies. Propane sales were down this winter because of the warm season. They had to cut back on distributions. Has probably dropped more than it should have but don't buy on till it has stopped.

2006-04-04

DON'T BUY

17.200

Has propane, but diversified into other industries such as building materials, aluminum fabrication. They were hurt by the warmer winter, as demand for propane was weak. Too much debt on their balance sheet.

2006-03-31

DON'T BUY

17.750

Has been a big disappointment over the last year. Made some acquisitions which has created more volatility. Payout ratio is 100%. Have just cut distributions.

2006-03-24

SELL

18.120

Superior Plus is a trust they did hold for a long time but has gradually been decreasing their holdings. For the last couple of years ago Superior has been diversifying and entering new businesses. They have had mediocre performances after the trust expanded. There is weakness in their propane division because of mild weather and the high cost of propane. They have had to cut their distribution. Payout ratio is 96%. The next 6-12 months will be challenging for this trust.

2006-03-17

WAIT

21.850

Superior Trust is one that they have liked for a long time. In the long term it will do just fine. However, 2005 was a difficult year for them and they have yet to see 4th quarter results. Expectations are they might be a little weak. If you are looking for one for your first trusts, she is recommending Canadian REIT, Penn West, Yellow Pages Business Fund and BFI. (they own these trusts) These trusts are expensive though.

2006-03-04

HOLD

21.340

Has had a bit of a rough go. Starting to stabilise. Demand for propane will be down which will have a negative impact on revenues. They have diversified. Expects some better results through the year.

2006-02-17

HOLD

22.600

Has a fantastic track record with an excellent management team. Propane demand has been decreasing so management diversified into areas, a lot of which were related to the housing market. Management has proven time after time that it is able to perform.

2006-02-03

WATCH

23.660

James Leung

They have a business model that continues to diversify. Its core business was propane but in recent years have made acquisitions not related to the original business. Have some operational issues which management is addressing.

2006-01-27

SELL

23.630

Greg Guichon

The acquisitions they were making bothered them. They were turning into a mini conglomerate. Prefers purer trusts. As much more commodity risks than other trusts.

2006-01-20

WEAK BUY

23.660

Has gone through quite a metamorphosis over the last couple of years. Has expanded from propane pulp chemicals, aluminum and a number of other areas. It is now almost a conglomerate model. Very strong management team. Probably a little bit undervalued given the strength of the underlying parts.

2006-01-06

DON'T BUY

23.500

One of the older trusts. Having embraced the conglomerate model very well. They have four or five operating divisions. Their colour business in propane has been in decline for some time. A decent management team, but is concerned with the amount of debt that they carry as well as the payout ratio.

2005-12-30

DON'T BUY

23.700

Decreased his weighting in his funds. Could see the growth slowing in their propane business. Has now gone into a few other businesses. Doesn't think you will see much growth.

2005-12-23

BUY

24.950

Glenn MacNeill, P.Eng.

A multifaceted trust. Involved in propane distribution, pulp and paper, wall coverings. Has some reasonable good assets, but doesn’t care for multifaceted businesses.

2005-12-14

HOLD

21.790

James Leung

In the last several years have started to diverisfy from propane into areas such as a pulp chemical, dry wall and flat rolled aluminum. During the last couple of quarters, there were performance issues with the original propane business.

2005-11-11

DON'T BUY

22.500

David Chapman

11% distribution. Has suffered with all the other trusts and is in a downtrend right now. Can't see any bounce here at all. If you have owned for a while and have a profit, consider taking some money off the table.

2005-11-09

HOLD

22.040

One of the hardest hit business trusts. There's a lot of company challenges, particularily in the propane distribution business. Volumes are down. Have a fairly diversified asset base. Expects to see some choppy waters ahead.

2005-11-04

HOLD

23.830

They have 4 different business lines. Has been really beaten up. Probably over sold.

2005-10-28

TOP PICK

24.570

All 3 picks tonight are income trusts as the sector has been massively oversold. With the government's white paper, the stopping of getting legal opinions and the fear of rising interest rates people sold them as though they were worthless. Just increased their distribution giving a 10% yield.

2005-10-24

SELL

23.750

Greg Guichon

Has moved from a very simple trust to a very complex one covering many industries. These industries are very cyclical. Too complex to follow.

2005-10-21

BUY

25.960

Recently bought aluminum fabricator in the US. At this price feels it offers a reasonable risk/reward ratio.

2005-10-07

WAIT

26.280

Stock dropped because propane distribution has been dropping and may not turn around any time soon. Good management which has diversified the business into other areas. Areas have not performed that well either. Just acquired a manufacturer of flat rolled aluminum products which is positive. Expect it to go sideways for awhile.

2005-09-30

SELL

26.080

Has sold off a little bit. Has slowly moved from a growth trust to a more of a low to no growth. Seeing some cracks in some of their underlying businesses.

2005-09-23

BUY

28.800

Had a pretty disappointing 2nd quarter which was a surprise to the market. With regards to issues on their propane division, she does feel this will be in a secular slow decline, but very slowly and it was a one time issue. Sees some good strength in some of their other businesses. Good management.

2005-09-16

TOP PICK

28.800

Reported a weak 2nd quarter and the units came off quite hard. It has a very strong business and an excellent management team. In the long run this will be a company that continues to create value. Periodically it does report a weak quarter and this is an opportunity to buy.

2005-09-16

BUY

27.890

Took a dive last month because the results were kind of lousy. The propane division had a really bad quarter. The rest of the company did pretty well. Very strong management. Buying it for his new clients. Good price.

2005-09-08

WEAK BUY

28.460

Price dropped 15% on the release of their Q2 results. Most of the problem was with the propane division. Building supplies division did very well and the chemicals division was decent. Very close to 100% payout ratio which is a big concern. Has a great track record of increasing distribution growth.

2005-08-19

HOLD

28.200

Norman Levine

The new businesses that they acquired have not shown the same characteristics of growth that the propane did. Propane seems to be slowing down a bit. Earnings were less than what market was looking for so the stock sold off. Hold as an income, not a growth.

2005-08-15

DON'T BUY

27.530

Just reported. Their propane business is now down to about 40/45% of the total. Reported disappointing volumes, but more important, disappointing margins. Have been selling this one over the past year. Concerned about the propane business long term. Their other businesses are also cyclical businesses.

2005-08-12

BUY

32.520

A great name. Good management that has been able to diversify from just propane. Very stable for income.

2005-07-29

TOP PICK

32.200

(A Top Pick Jan 10/05. Up 9.5%.) Strong management team. Businesses are suitable and appropriate for a trust structure. Superb track record. The existing distribution stream is secure from its core propane distribution and pulp chemical business. On top of that there is some opportunity for growth as they are expanding their chemical business, plus they are into a new line, dry wall and building products distribution.

2005-07-22

BUY

30.710

A high quality diversified trust. Saw explosive growth in the price, but getting more difficult to put together those kinds of acquisitions that will matter, because it is getting large.

2005-06-10

TOP PICK

30.680

Over the last few years, the company has reinvented itself as a mini conglomerate. Have 2 chemical businesses, a building products division, an energy marketing business. A well managed trust that's raised its distributions pretty much every year. Not cheap at this price, but not too expensive either.

2005-06-09

BUY

30.640

Dan Bastasic

65% payout ratio. Have diversified in the last couple of years through acquisitions and so should experience quite a bit of growth going forward. Free cash flow in relation to free cash distributions is close to 90% and is lower than what he would like to see but should be able to grow into it with their new acquisitions.

2005-05-27

TOP PICK

31.190

Very strong management team. Long record of increased distributions and shareprice gains. Diversified in a variety of unrelated businesses but complementary. 72% payout ratio. Not inexpensive.

2005-05-20

HOLD

31.400

Have become diversified into a few different areas. Continues to like the story, but it is probably pretty fully valued here. Top knotch management.

2005-05-06

BUY

29.870

Norman Levine

Their biggest business is distributing propane. They have also diversified into other areas, such as appliance distribution, chemical distribution which he likes.

2005-03-31

BUY

32.040

Stunning track record. Good management. Can grow.

2005-03-04

HOLD

31.510

Used to be a propane distribution business only, but made acquisitions in unrelated business which are generating relatively stable levels of cash flow. Good management. Has had a good run.

2005-02-25

BUY

30.600

Has raised their distributions for several years. Great management.

2005-01-25

BUY on WEAKNESS

30.020

Blair Wilson

Management has done an extremely good job in growing cash distributions. Have also diversified away from just propane and into propane, pulp chemicals and gyprock and have been able to lock in profit margins. About an 8% yield. Fairly valued.

2005-01-18

TOP PICK

29.300

(A Top Pick on Nov 17/04. Down 2.7%.) Have raised their distribution every year in the past 8 years. Very strong management team and a good portfolio of businesses should continue to produce value for investors.

2005-01-10

BUY on WEAKNESS

29.900

Bruce Campbell

Diverted into chemicals and more recently into building products where they have opportunities to diversify and grow. Still 50% propane. Management has a good track record of integration. A good trust.

2005-01-04

SELL

30.020

Peter Brieger

Made a good move into the non-toxic supplies for the pulp business and have since made other acquisitions. If you own, take profits.

2004-12-31

DON'T BUY

28.000

Hugh McCauley

Feels the company is in transition from a growth story to a more stable yield story. An average trust with stable distribution over the next couple of years. Prefers growth trusts.

2004-12-02

HOLD

29.130

Blair Wilson

Has one of the best track records for stable and growing distributions. Management is very good at maintaining profit margins. Valuation is a little expensive. Have a 2 sector perform.

2004-11-26

TOP PICK

29.390