Pick of the Junior Industrials – Two Industrials: 1 buy, 1 hold

Article Excerpt

TOROMONT INDUSTRIES LTD. $28.10 (Toronto symbol TIH; SI Rating: Extra Risk) (416-667-5511; www.toromont.com; Shares outstanding: 64.7 million; Market cap: $1.8 billion) operates in two business segments: the Equipment Group and the Compression Group. The Equipment Group includes one of the world’s largest Caterpillar dealerships by revenue and geographic territory in addition to rental operations. Also part of this group is Toromont Energy. Toromont Energy supplies, constructs and operates high efficiency power plants of less than 50 megawatts, using Caterpillar’s power generation technologies. Toromont’s plants are mostly fueled by natural gas, but also by landfill gas, biogas and diesel fuel in remote locations. Toromont Energy has built more than 50 power plants in the past 15 years. Toromont Energy also operates power plants throughout Ontario that supply energy to hospitals, district energy systems and industrial processes. The Compression Group specializes in the design, engineering, fabrication, and installation of compression systems for natural gas, fuel gas and carbon dioxide in addition to process systems and industrial…