High Oil Helps These Three Industrials

Article Excerpt

Last year’s big run up in oil prices increased the operating costs of most industrial companies. But those that supply equipment and services to exploration firms have been among the biggest gainers in the past few months. Here are three industrial stocks that should continue to profit from high oil prices. However, only two are buys right now. SHAWCOR LTD. $25 (Toronto symbol SCL.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; SI Rating: Average) makes sealants that protect oil and natural gas pipelines from rust and other forms of corrosion. The company also inspects and repairs pipelines, and makes specialty cables and wires. In the three months ended September 30, 2006, ShawCor’s earnings from continuing operations fell 52.2%, to $0.22 a share (total $16.6 million) from $0.46 a share ($34.7 million) a year earlier. However, the drop was entirely due to one-time items. The latest quarter included a $5.4 million charge related to ShawCor’s decision to scale down its operations in Nigeria due…

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