VALUE
Stella-Jones Inc.
18.6%
- Growth in TTM earnings, Q2/09 vs. Q2/08
A lot of people think Stella-Jones makes beer. Wrong. It makes far sexier "industrial pressure-treated wood products." Think utility poles and railroad ties. Those kinds of things have generated positive cash flow even during the recession, and Montreal-based Stella-Jones uses that cash to grow by acquisition of mom-and-pop shops. With its share price only about 8.5 times earnings recently, the company also looks like a bargain.
GROWTH
Pengrowth Energy Trust
77.3%
Growth in TTM revenue, Q2/09 vs. Q2/08
- Income trusts aren't normally growth vehicles, but there are exceptions, and Pengrowth Energy Trust might be one. New CEO Derek Evans recently slashed monthly distributions to unitholders and sold a bunch of new units. His plan is to use the cash proceeds to put the exploration drill bit to work, offsetting the declines in the company's oil and gas reserves by finding new ones. He has a solid reputation, and Pengrowth was not known for optimal management, so the bet is that he can improve things relatively easily.
-F.T.
- Report on Business Company Snapshot is available for:
- STELLA-JONES INC.