Lyle SteinMcCoy Corp.MCB.TOTOP PICKMar 28, 2008

(Market Call Minute.) An energy service company that is still struggling. There is quite a bit of value here, but it is going to take energy services as a whole to come back.

Longer-term out, over the next few years, he thinks you will be rewarded. Half their market cap is in cash. When the oil/gas sector hits bottom, their earnings and revenue pretty much collapses. Also, it is offshore and a lot of their south American stuff has hurt them. He expects that over the next few years things will come back and you will be handsomely rewarded. The next couple of quarters are probably not going to look good.

This services the oil/gas industry. Has some diversification in what it does. Extremely well-managed company. Feels they have taken corrective action given the environment they are in. If you own, he would not be selling.

(Top Pick Apr 21/14, Down 34.79%) When oil price cratered, it was time to get out. No debt and pays a dividend so now it is probably not a bad stock.

Had some good quarters and there were some analysts that got behind the story, but then they missed on a couple of quarters. Sell a lot of tooling equipment for offshore drillers. Pretty good value at these levels, but management has to show that they can start to grow earnings again. (He inherited a little when he took over this portfolio.)

It had a mishap with an ERP installation (software). These things are tricky to implement. It is a temporary problem and in the long term the ERP will increase profits. Next year will be very good for profits because they go into replacement parts.

Really quite a good company. Manufactures farm equipment and other industrial products. Likes how they think. Came out with some new products about a year ago and it hurt their short-term performance. They were of the view that the products were good and the revenues would kick in later. So the stock took a bit of it for a couple of quarters. Great products, sales are picking up, margins are improving and it’s up to a new high. Could be a takeout candidate. Not expensive.

This is in the right sector and the basket in this sector has done well and thinks it will continue to do so. Chart shows an initial advance in 2010 and then a large consolidation during 2011 and 2012, which he calls bullish congestion. Nothing to stop it from going higher.

Hasn’t looked at this for a year or two. A decent business, but you have to remember this is an oil field services business. This sector has been absolutely battered in the last year. This is a very small company. Hitting a 52-week high is an aberration. If you own, he would consider taking some profits at this point.

(Market Call Minute.) There are way better oil/gas service companies to own than this one.

Has taken a bit of a breather here. Almost 6% dividend. Have some interesting opportunities offshore, which is obviously going to be a big part of the big North American scene if the US does decide to drill.