Canam Group Inc.

Canam engineers and manufactures structural products (steel or wood) for large buildings and bridges.  There recent performance has been very disappointing to say the least and it’s not clear they’re close to turning around but management has been working to improve performance.  The CEO owns approximately 11% of the company’s stock making his interests reasonably aligned with shareholders.  With almost 75% of their revenues coming from the United States, they are positioned to benefit from continued infrastructure spending in the U.S.  Until the turnaround becomes more apparent, I’m taking a cautious approach with my investment because it could get worse.  They have a decent balance sheet that is net debt but they have significant non-cash net working capital.  If and when the turnaround comes, there’s significant opportunity to recover from a depressed P/E multiple on depressed earnings.

Sold on April 27th, 2017 at $12.13 after the company announced it is being taken private by the CEO.  My total gain was 98%, unfortunately it was only a 0.55% position as I was waiting for the next earnings release to see if there was stabilization or improvement in the business.