Research Report Highlights Undervalued Resource Sector Shares;
Enterprise Group’s (TSX: $E) Strong Growth Continues into 2017
March 28,
2017 - St. Albert, AB – (Investorideas.com Newswire) Enterprise Group, Inc.
(“Enterprise,” or “the Company”) [TSX: E], a consolidator of services to the
energy sector is focused on construction services and specialized equipment
rental, today announced that Chris Temple, Editor of US-based subscription
newsletter, The National Investor has released a comprehensive
report on the Company.
The report
succinctly recounts Enterprise’s history in the context of the challenging
Western Canadian resource market: seeing oil drop from $100 a barrel in 2014 to
under $30 and currently $47.
Mr. Temple states, “Together with the
stabilization in energy prices helping out the energy industry, the better
environment is giving an early boost to federal and provincial spending on
infrastructure. Enterprise SVP Des O'Kell recently told me, in fact, that the
January-February time frame this year (2017) has seen Enterprise's
infrastructure folks booked to near-full capacity.”
Salient
investment points advanced by Mr. Temple:
- ·
Trading at a market price of C$0.32,
shares are trading at 40% of book value of C$0.82
- ·
Historically normal share prices
tend to be 2-3 times book value
- ·
Substantial increase in business not
yet reflected in share price
- ·
Management has significantly
increased (by 275%) its ownership stake from 6.7% in 2014 to 18.4% currently
- ·
Buy recommendation based on
improving metrics as well as management’s ownership incentive
- ·
Significant dollars are being allocated by
government for needed and/or overdue work of various kinds.
For
Q4 ending December 31, 2016, Enterprise saw a 20 percent increase in
revenue to C$8.3 million from C$6.9 million for the same period 2016. Gross
profit margin rose to 29% from 5% in Q4 2015.
As
well, the Company also reported positive EBITDA of C$1.8 million for Q4 2016
versus (C$120,950) 2015. For the same period, EBITDA rose to 22% from negative
2% in Q4 2015.
While it has
been an extremely challenging period for resource companies in Western Canada,
Enterprise has demonstrated its confidence and ability to analogously 'weather
the storm' strongly while many competitors and clients are either financially
impaired or gone.
In conclusion, Mr. Temple states: And Enterprise
Group--trading at much less than half its book value--is among my selected
recommendations of growth-oriented companies because of my view that it
represents one of the most incredible bargains you can find.”
About Enterprise
Group
Enterprise
Group, Inc. is a consolidator of construction services companies operating in
the energy, utility and transportation infrastructure industries. The Company's
focus is primarily construction services and specialized equipment rental. The
Company's strategy is to acquire complementary service companies in Western
Canada, consolidating capital, management, and human resources to support
continued growth.
For questions or additional information, please
contact:
Leonard
Jaroszuk: President & CEO
Desmond
O'Kell: Senior Vice-President
Forward Looking Information
Certain
statements contained in this news release constitute forward-looking
information. These statements relate to future events or the Company's future
performance. The use of any of the words "could", "expect",
"believe", "will", "projected",
"estimated" and similar expressions and statements relating to
matters that are not historical facts are intended to identify forward-looking
information and are based on the Company's current belief or assumptions as to
the outcome and timing of such future events. Actual future results may differ
materially. The Company's Annual Information Form and other documents filed
with securities regulatory authorities (accessible through the SEDAR website www.sedar.com) describe the
risks, material assumptions and other factors that could influence actual
results and which are incorporated herein by reference. The Company disclaims
any intention or obligation to publicly update or revise any forward-looking
information, whether because of new information, future events or otherwise,
except as may be expressly required by applicable securities laws.
ADDTIONAL INFORMATION/DISCLOSURE CONCERNING THIS SPECIAL REPORT: Enterprise Group, Inc. was previously, prior to the
preparation of this report, a recommended stock by the Editor in The National
Investor. Neither this publication nor its Editor/Publisher, Chris Temple, has
thus been paid to make this recommendation; one that has previously been issued
to the paid Members/Subscribers of The National Investor. Enterprise, in
anticipation of an opportunity to gain greater market awareness, has decided to
co-finance The National Investor in a marketing campaign wherein this
publication will make this specific report and others on market trends,
investment strategy and others available via various means to individual
investors. Enterprise has of the date of this report made a one-time payment to
National Investor Publishing of US$5,000.00 for the preparation of this
expanded, updated special report on the company, additional exposure on The
National Investor web site in a publicly-accessible "Featured
Opportunities" page, pro-active distribution of the report to investors
and for the procurement of and placement in on-line media, web portals and
similar sites.
Disclaimer
This news is published on
the Investorideas.com Newswire – News that Inspires big ideas
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party
sourced news, articles and equity research as well as creates original content,
including video, interviews and articles. Original content created by
investorideas is protected by copyright laws other than syndication rights. Our
site does not make recommendations for purchases or sale of stocks, services or
products. Nothing on our sites should be construed as an offer or solicitation
to buy or sell products or securities. All investment involves risk and
possible loss of investment. This site is currently compensated for news
publication and distribution, social media and marketing, content creation and
more. Contact each company directly regarding content and press release
questions. Disclosure is posted for each compensated news release, content
published /created if required but otherwise the news was not compensated for
and was published for the sole interest of our readers and followers. More
disclaimer info: http://www.investorideas.com/About/Disclaimer.asp. Disclosure this news is a
paid for news release on the Investorideas.com newswire by Group, Inc.
(TSX:E). Learn more about costs and our newswire service http://www.investorideas.com/News-Upload/
Additional info regarding
BC Residents and global Investors: Effective September 15 2008 - all BC
investors should review all OTC and Pink sheet listed companies for adherence
in new disclosure filings and filing appropriate documents with Sedar. Read for
more info: http://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must
adhere to regulations of each country.
