NEWALTA CORP. ( NAL/ TSX)

The position: Long-term holding

Why do you like it? This industrial waste recycling and services company has become one of the largest players in the North American market.

“They’ve migrated their business model from one-off site cleanups toward setting up on-premise facilities with longterm contracts, so more and more of their revenues are recurring,” Takacsy said. “They have very good margins, made huge investments to grow the business and regularly increase their dividend while still trading at a very reasonable valuation. Also, stricter environmental regulations provide good tailwinds.”

Biggest risk: A substantial decline in oil prices and drilling

activity.