Topic: How To Invest

Hi Pat: Please give me your recommendations/analysis for Enterprise Group and North American Tungsten. Much appreciated. Thanks.

Article Excerpt

Enterprise Group, $0.52, symbol E on Toronto (Shares outstanding: 61.0 million; Market cap: $32.7 million; www.enterprisegrp.ca), provides underground construction services for utilities, including installing power, communication and natural gas lines. In early 2012, the company started up a heavy equipment rental division called E One Limited. In September 2012, E One acquired Artic Therm International Ltd. Founded in 1998, Artic Therm rents flameless heaters to customers in the construction and oil and gas industries. These heaters range in heat output from 375,000 British Thermal Units (BTUs) to 3 million BTUs. Enterprise Group is profitable: it earned $0.04 a share in the three months ended December 31, 2013, compared to nil per share a year earlier. Revenue rose 3.5%, to $18.5 million from $17.9 million. The company’s total debt of $13.3 million is high at 40.7% of its market cap. As well, it aims to keep growing by purchasing small companies. This adds risk, but Enterprise aims to cut that risk by…