ShawCor Ltd. $17 – Toronto symbol SCL.A

SHAWCOR LTD. $17 (Toronto symbol SCL.A (old symbol SCL.SV.A); Aggressive Growth Portfolio, Manufacturing & Industry sector; SI Rating: Average) makes sealants that protect oil pipelines from corrosion.

Thanks to rising energy prices, ShawCor’s earnings from continuing operations in the first quarter of 2006 rose 32.0%, to $0.33 a share from $0.25. Revenue rose 6.1%, to $257.7 million from $242.9 million.

The company recently completed a major contract to coat an underwater pipeline in the North Sea. But the company’s growing reputation is helping it win new contracts, particularly in Asia.

ShawCor has doubled in the past year, but still trades at a reasonable 16.7 times its projected 2006 profit of $1.02 a share. The $0.18 dividend yields 1.1%.

ShawCor is a buy.

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