Topic: How To Invest

Q: Hi Pat: Please, may I have your thoughts on ZCL Composites. Thank you.

Article Excerpt

A: ZCL Composites Inc., $12.10, symbol ZCL on Toronto (Shares outstanding: 30.8 million; Market cap: $373.7 million; www.zcl.com), makes fiberglass storage tanks and related liners, mainly for the oil and gas industry. It markets those corrosion-resistant products under the ZCL, Xerxes, and Parabeam trademarks. ZCL operates two plants in Canada, four in the U.S. and one in the Netherlands. The company sells to both the retail (downstream) and production (upstream) sectors of the Canadian and U.S. petroleum industry. It has about 90% of the Canadian market for underground storage tanks. The company also sells underground tanks for storing wastewater. Revenue rose 34.1%, from $127.0 million in 2011 to $170.4 million in 2012. It then fell to $161.7 million in 2013 on lower demand for aboveground tanks. The company’s revenue improved to $170.8 million in 2014 and reached $185.7 million in 2015. Earnings jumped from $0.12 a share (or a total of $3.5 million) in 2011 to $0.54 a share (or $16.3 million) in…

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