Two aggressive stocks—1 buy & 1 hold

Article Excerpt

SHAWCOR LTD. $22 (Toronto symbol SCL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 70.1 million; Market cap: $1.5 billion; Price-to- sales ratio: 1.0; Dividend yield: 2.7%; TSINetwork Rating: Average; www.shawcor.com) is a leading producer of sealants and coatings to keep oil and gas pipelines from rusting. It also makes electrical wire and other industrial products. The company’s revenue in the quarter ended September 30, 2018, fell 11.3%, to $350.6 million from $395.1 million a year earlier. That’s mainly because lower demand for pipeline services in Latin America and Asia offset higher activity in North America and Europe. Earnings dropped 39.1%, to $0.14 a share (or a total of $10.4 million) from $0.23 a share (or $19.5 million). Shawcor’s order backlog at the end of the quarter was $395 million. In addition, it has submitted bids on new projects totalling $900 million. It is also working with customers on projects worth over $1.8 billion. The company’s earnings will probably improve from a forecast $0.42 a..

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