Posted: Monday Apr 25 8:59:13AM 2016
STT.v -.005 to C$.195 STT Enviro suffered their first loss in 9 qtrs. Serves petroleum industry so sales are dropping but company is saying losses are the result of a poor bidding job on a large contract for tanks. Mentioned in Q3 report and project has gone on longer than expected so resulted in a loss for Q4. Backlog continues to decline slowly. Seems to be a well managed company but will have to endure industry downtrend. Has no debt, good cash balances around .13/share so expect them to do well over time.
Posted: Wednesday Apr 6 7:48:03AM 2016
STT Enviro Corp is a supplier in the design, engineering, integration and installation of engineered systems which are used by its customers to clean-up water and control air emissions.
The engineering solutions provides half of the revs and most of the profits. The tank division highlights bolt together tanks that are significantly cheaper than onsite welded units.
STT sales hit a record for 2015 but they service the petroleum and mining industries so revs from oil companies are going down. They have a significant backlog of 22 million as of 9/30/15 but the backlog is down from a peak in the low 30's earlier in 2015.
Why buy this company? Low risk. They have cash of .13 a share. Shareholders approved a dividend policy. They have no debt. They have been profitable thru 2015. Q3 was barely profitable due to a cost overrun on a big tank project. They let the head of tanks go and installed more price/budget controls. There are probably still jobs in the pipeline that are low margin so Q4 is likely to be weak as well but CEO talked of lots of bids in the pipeline for bigger jobs. Stock bottomed at .175 last week and I had to bid up to grab a few at .22 this morning. Will see if it spikes and drops again and try to grab some cheaper.