Topic: How To Invest

Q: Thank you for your welcoming email. I’m very happy to join you in the Inner Circle. A year ago, when the price of oil was very low, I reasoned that it had to go up, so I bought Badger Daylighting. I would very much appreciate any advice that you can give me. Thank you.

Article Excerpt

A: Badger Daylighting, $35.95, symbol BAD on Toronto (Shares outstanding: 35.9 million; Market cap: $1.3 billion; www.badgerinc.com), provides excavating services that are less destructive than methods involving heavy equipment like backhoes. Most of its customers are in the utility and petroleum industries. Badger’s main product is the truck-mounted Badger Hydrovac, for digging in challenging conditions, such as areas with congested soil. The system liquefies the soil with a pressurized water stream; then, a powerful vacuum removes it and stores it in a tank. The company manufactures its own Hydrovac units, but works through what it calls operating partners in the U.S. and Canada. Badger provides the expertise, trucks, and marketing and administration support; and the partners operate the equipment and build relationships with customers. There are 369 Badger Hydrovac units operating in Canada and 936 in the U.S. Badger invoices the work and shares the revenue with the partners based on a formula. In certain areas, it has established its own company-run Hydrovac…