Enerflex

Enerflex - EFX . TSX

This is what I thought in August 2020 when I first bought the stock...

Enerflex is a service, rental and engineering firm serving the natural gas industry. With a long track record of profitability, a solid balance sheet and a globally diversified suite of operations, I was willing to take the chance that they had what it took to make it through to the other side of a severe industry downturn and emerge triumphant on the other side. With a p:e of 5 to their 5 year average earnings and a price well below book value I thought I was being well compensated for the near term risks. While the company was facing the prospects of several quarters and maybe even years of losses, I was hopeful that the low entry price of just under $6 a share would ultimately make this a rewarding investment.