Douglas KeeMullen Group LtdMTL.TOCOMMENTOct 25, 2012

Stockchase Research Editor: Michael O'Reilly

As management expects a stronger finish to last year than expected, based on consumer resiliency along with their ability to control costs and make good acquisitions, we reiterate MTL.  We like that cash reserves are stable, while debt is retired and shares bought back.  It trades at 11x earnings, 1.3x book and supports a 17% ROE.  It pays a good dividend, backed by a payout ratio of under 50% of cash flow.  We recommend trailing up the stop (from $11) to $13, looking to achieve $17 -- upside potential of 19%.  Yield 5.0%    

(Analysts’ price target is $16.69)

Stockchase Research Editor: Michael O'Reilly

Okotoks based transportation logistics specialist, MTL, trades at 10x earnings, 1.2x book and supports a 17% ROE.  Cash reserves are stable, while debt is retired and shares are bought back. The comany continues to make good acquisitions during this challenging time for the sector.  It pays a good dividend, backed by a payout ratio under 50% of cash flow.  We recommend placing a stop-loss at $11, looking to achieve $17 -- upside of 28%.  Yield 5.2%

(Analysts’ price target is $17.61)

(A Top Pick May 26/22, Down 8.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with MTL has triggered its stop at $11.50. To remain disciplined, we recommend covering the position at this time. This will result in a next investment loss of 11%, when combined with previous buy recommendations.

Stockchase Research Editor: Michael O'Reilly With recently reported EPS up 58% over the year, this provider of trucking and logistics services in Canada and the US, is again reiterated as a TOP PICK. Margins are flat, meaning inflation costs are being passed on to customers and insiders continue to buy the stock. It trades at 1.3x book value. Its monthly dividend yields 5.67% and is backed by a payout ratio of 65% of earnings. We continue to recommend a tight stop loss at $11.50, looking to achieve $16.00 - upside potential over 28%. Yield 5.9% (Analysts’ price target is $16.11)

Stockchase Research Editor: Michael O’Reilly As a provider of trucking and logistics services in Canada and the US, and being on the frontline of supply chain network, we again reiterate MTL as a TOP PICK. Recently reported revenue was up 48% over the year, beating expectations by 8%. It pays a good dividend backed by a payout ratio under 65% of cash flow. We recommend trailing up the stop (from $10.50) to $11.50, looking to achieve $16.00 - upside potential over 18%. Yield 4.5% (Analysts’ price target is $15.94)

Stockchase Research Editor: Michael O’Reilly As a provider of trucking and logistics services in Canada and the US, we reiterate MTL as a TOP PICK. Being of the frontline of the supply chain network, the company will one of the first to benefit from a return to a normal economy. Last month the company announced a 25% dividend increase as it feels it will be in a superior cash position in 2022. Trading at under 1.3x book, it is good value here. It is trading a good value here at 18x earnings and only 1.4x book value. It pays a good dividend backed by a payout ratio under 70% of cash flow. We continue to recommend a stop loss at $10.50, looking to achieve $16.00 - upside potential over 33%. Yield 4.08% (Analysts’ price target is $15.94)

Stockchase Research Editor: Michael O'Reilly MTL provides trucking and logistics services in Canada and the US. As the economy continues to reopen in North America, the company will benefit from continued demand for its expertise. Recently reported earnings of $0.21 beat analyst expectations of $0.19 for the quarter. It is trading a good value here at 18x earnings and only 1.4x book value. It pays a good dividend backed by a payout ratio of 57% of cash flow. We would buy this with a stop loss at $10.50, looking to achieve $16.00 - upside potential over 16%. Yield 3.54% (Analysts’ price target is $15.80)