Topic: How To Invest

Hello Pat: What are your thoughts on Seacliff Construction? They just reported a great quarter and appear to have solid financials.

Article Excerpt

Seacliff Construction Corp., $14.30, symbol SDC on Toronto (Shares outstanding: 21.9 million; Market cap: $312.8 million), is a holding company that provides engineering and construction services, mainly in western Canada. Seacliff first sold shares to the public on April 24, 2008, for $13.00 each. Seacliff has three main divisions: 1) Dominion Construction provides general construction services, including project planning, mainly to industrial clients. Dominion accounted for roughly 73% of Seacliff’s 2009 revenue. 2) Canem Systems installs electrical and data-communication equipment in large industrial and multi-unit residential buildings. Seacliff bought Canem for $9.6 million on February 2, 2009. This business supplied 27% of Seacliff’s 2009 revenue. 3) Saskatchewan-based Broda Group provides earth-moving services. It also makes concrete and aggregate mixtures for paving roads and other infrastructure, such as bridges and parking lots. All of Saskatchewan’s major potash, uranium and energy-exploration companies are Broda clients. Seacliff bought Broda for $51.5 million on December 1, 2009. Because the purchase was made so late in the year, Broda…