Monthly Message

The Wutherich & Co. Composite was up 4.0% in November. This compares with the S&P/TSX up 2.2%, the BMO Small Cap Index up 1.8%, S&P 500 (US$) up 3.7%, the DJIA (US$) up 5.9%, while the NASDAQ (US$) was up 2.6%.

November Trumped October’s strong performance for the Wutherich & Co. Composite. Our positions in Avigilon (AVO-T) and CRH Medical (CRH-T) have certainly helped. Both companies reported great quarters and have strong outlooks for future growth. AVO makes security surveillance systems and CRH provides products and services to gastroenterology clinics in the U.S.

This oil rally looks to have legs but we never try to make a big picture call on the sector. When we look at energy names, we choose companies that we think can survive the bad times and thrive in the good times. To wit, we initiated a position in Ensign Energy Services (ESI-T) several months ago. We think ESI is one of the better managed Calgary based oil and gas service providers. The company operates drilling rigs in Canada, the U.S. and overseas with roughly a third of revenues in each segment. ESI has a disciplined, veteran management team that has survived many downturns in the past. With very little capital spending, the company can grow dramatically for several years with its existing asset base, all the while paying a 5% dividend.

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