New Purchase ZCL Composites Inc.

2d4f8-zcl-composites-inc

 

Hey guys I made a purchase and wanted to share it with you. I really wasn’t planning on making a purchase for the remainder of 2017 but said I would if something was screaming buy buy buy. I believe I found that in ZCL Composites Inc. on Nov 2nd after the markets closed the company announced disappointing 3rd quarter results. On November 3rd when the markets opened the stock was down about 17% in the first hour of trading. I believe that investors were overselling.

Before I get into the results why don’t I mention what kind of company ZCL Composites Inc. is.

ZCL Composites Inc. (ZCL) is a Canada-based manufacturer and supplier of fiberglass reinforced plastic (FRP) underground storage tanks. The Company also provides custom-engineered aboveground FRP and dual-laminate composite storage tanks, piping and lining systems, and related products and accessories, where corrosion resistance is a high priority. Its segments are Underground Fluid Containment (Underground) and Aboveground Fluid Containment (Aboveground). The Company has three product groups: Petroleum Products, Water Products and Corrosion Products. The Petroleum and Water Products groups are components of the Underground segment, use a similar production process, and use the brand identities of ZCL, Xerxes, and Parabeam. The Corrosion Products are included in the Aboveground segment, and use the brand identities of ZCL Corrosion, ZCL Dualam and ZCL Troy. ZCL has over five plants in Canada, over six in the United States and one in the Netherlands.

(Source: RBC Direct Investing)

Some Third Quarter Results

  • Net Income down $2.4 million
  • Revenue down $5.5 million or 9%
  • Gross Profit down $3.1 million or 21%
  • Order backlog decreased  7% to $43.3 million

The company mentioned a couple of reasons for the third quarter results they are.

  • Larger customers deferred spending
  • Strengthening Canadian Dollar
  • Hurricanes and flooding in the US Gulf Coast resulted in resin price increases and deferral of shipping orders.

Transaction Details

On November 3rd I purchased 100 shares @$11.35 for a total purchase cost of  $1,144.99. Before this purchase I owned 127 shares which were purchased at $9.08 per share. After this most recent purchased my average cost per share rises to $10.12.

Dividend

ZCL Composites Inc currently pays a quarterly dividend of $0.12 with my additional 100 shares my dividend income increases $12 quarterly and $48 annually.

So folks what do you think of my purchase? Do you own ZCL Composites Inc? Please feel free to comment in the comment section below I enjoy hearing what you have to say.

Facebook

Before I finish up just wanted to mention that last week I created a Facebook page for my blog if you would like to join it just click on the like button that is on the right side of the screen in the Facebook section. Thanks 🙂

 

 

Thanks for reading

Matthew

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9 thoughts on “New Purchase ZCL Composites Inc.

    1. Hey buddy thanks for stopping by. Probably the biggest customer is gas stations as they need to replace their underground storage tanks. For example I work part-time at a gas station and we just replaced our tanks purchased from ZCL Composites.

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  1. I’ve owned ZCL since early this year, and right off the bat they paid me a one-time special dividend! If the price is still reasonably low next month I may buy a few more shares. I have to be conservative presently because I just recently bought another stock and the money in the kitty is running a little low. I now know how Warren Buffett felt at the beginning of his career when he wanted to buy more but didn’t have the assets. Oh well, a little patience…

    Liked by 1 person

    1. Thanks for the comment. At the moment I’m not that worried about my portfolio getting larger. My RRSP account i might add some US stocks in the future but no more Canadian stocks. As for my TFSA account I will probably add some more to it. I track my stocks by downloading their quarterly and annual reports onto my iPad and I can read them at work or on the go. 😀

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