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Enterprise Group (E.TO): Leading Rebound In Western Canadian Energy Sector

  • Broadcast in Business



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Enterprise Group (E.TO or ETOLF) has had a phenomenal year making two strategic acquisitions in the area of construction, infrastructure and energy.  Enterprise bought a tunneling company which clears the way for pipes to run underground highways, trains or bodies of water.  There are great margins in that business as there are very few competitors and increasing demand.  
 Enterprise also bought Artic Therm which services pipelines through its patent protected flameless heat technology to assist operators working in cold weather conditions.  In addition, the company owns TC Backhoe & Directional Drilling servicing utility providers and EOne Limited which rents heavy equipment to crews constructing pipelines and facilities.  The company has over $30 million of equipment, trucks and specialized heating units.
 Enterprise's management team is looking for specialized, high margin businesses that generate large profits for shareholders.  The company has attracted a blue chip stable of companies which include Apache, Suncor Energy, Encana, Shaw, Telus...etc.  
 Enterprise has made a major run in 2013, but this may be just the beginning as some of the analysts that follow it says it is way undervalued and have targets of above $2.  
 Enterprise just announced its 3rd quarter results which showed the reason why management acquired these strategic businesses.  The company announced strong revenues, earnings per share and tens of millions of dollars worth of projects awarded with one of North America's largest pipeline company and one of Canada's largest railroad companies.  
 Enterprise is getting known for the quality of their work. 
Disclosure: Enterprise is a sponsor on my website and Jeb Handwerger owns shares.