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Inv Reporter says buy Kelso if aggressive

2014-10-31 18:02 ET - In the News

The Investment Reporter, in its Oct. 24, 2014, issue, says buy Kelso Technologies Inc., recently $6.55. This is the first time the Reporter has recommended the stock. Kelso sells rail tank car equipment used in the transport of hazardous materials. The Reporter says Kelso is in the right industry at the right time. Because of opposition to new pipelines, oil producers are shipping quickly increasing amounts of oil by rail. The Lac Megantic crash, however, underlined the dangers of oil transport, and resulted in new safety features for oil tank railcars built after Oct. 1, 2015. Existing tank cars will also be reworked to meet the new standards. This is a big opportunity for Kelso, which expects demand for pressure relief valves to hit 50,000 a year until 2017, then increase further to 70,000 a year until 2020. It built a 44,000-square-foot facility in June to meet this demand. In the first half, the company earned $2.3-million, up sharply from earnings of $240,636 last year. Its revenue soared by 138 per cent to $1.1-million. It is projected to earn about 20 cents a share in 2015. Since Kelso is in the volatile manufacturing sector, it is a buy for speculators, but not for conservative investors.

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