52-week low / high: $3.41 / $9.63
Shares Outstanding:  146.01 million
Market Capitalization:  $548.98 million

FiberTower provides “backhaul” services to wireless telecom carriers over its network of microwave and fiber optic pipelines. Backhaul is defined as the transport of data between a carrier’s cell site (tower or rooftop) and switch locations. Microwave architecture, the basis of FiberTower’s growth strategy, has many advantages to legacy copper cable, including speed of rollout and data transmission quality and scalability.   

The wireless industry continues to experience enormous growth based on the nearly insatiable demand for delivery of voice/video/data to handheld devices. As a result, the backhaul market is expected to grow to $10 billion in 2010 from $3.5 billion (2007). All of FiberTower’s installations are designed to accommodate future transport service needs, including WiMAX, metro Ethernet and other packet-based protocols.

In August, FiberTower announced an agreement with Sprint Nextel to provide backhaul services in seven initial WiMax launch markets. Verizon and Qwest also selected FiberTower as the backhaul subcontractor for their U.S. General Services Administration 10-year, $20 billion contract. 

Royal Gold, Inc. (RGLD) acquires and manages precious metals royalties by providing financing, engaging in exploration alliances or through outright purchase of a discounted future stream of revenues from exploration and mining companies.

Royal Gold has royalty interests in at least five mining operations in Nevada, and one each in Montana, Sonora, Mexico and Santa Cruz Province, Argentina. Royalties from each vary and some are dependent on the price of the underlying precious metal, i.e., higher prices bring higher royalties. During the fiscal year ended June 30, 2007, roughly 44% of revenues came from its first property: the Pipeline Mining Complex, near Elko, Nevada.

Royal Gold seems to have uncovered the secret to making lots of money without mussing their hair.

In the fiscal year ended June 2007, revenues were $48.4 million, up 70% from $28.4 million in 2006. Net income for fiscal 2007 was $19.7 million, or $0.79 per basic share, versus $11.4 million, or $0.50 per basic share, in 2006. Fourth quarter revenue (June 30, 2007) was $14.4 million, up 76% from $8.2 million in 2006.

Also as of June 300, 2007, the company had working capital of $91 million on hand, total current assets of $95.7 million and current liabilities of $4.7 million, a current ratio of 20 to 1. The company can be summed up in one word: outstanding.

Rally Energy Corp. is a Calgary-based oil and gas company with primary operations in Egypt and exploration activities in Pakistan.

Rally’s Egyptian property is the Issaran oilfield, a 72-square-kilometer tract with 127 MM BBL estimated reserves. In Pakistan, the company participates in a 200,000-acre concession with 3.0 trillion cubic feet natural gas estimated reserves.

Average production was 6,300 barrels per day in Egypt and 6 million cubic feet per day in Pakistan in the first quarter 2007. (Natural gas production in Pakistan is expected to increase to 15 MMCF/D in the third quarter.)

In the second quarter 2007 revenues increased 32% to 25.8 million from 2006. Net earnings were up 38% to 5.8 million for the quarter. For the six months ended June 30, 2007, revenues were 48.8 million, up 64% from $29.7 million in 2006. Net earnings for the first six months were $10.4 million, more than double 2006’s results of $5.1 million. Capital expenditures increased 235% to $47.5 million in the first six months as opposed to $14.2 million in 2006.

(On August 1, Citadel Capital, a leading private equity firm, announced its intention to acquire the company at a price of $7.30 per share. The transaction has received all necessary approvals and should be concluded on September 21, 2007.)

Aecon Group Inc. is the largest publicly traded construction and infrastructure development company in Canada and has nearly 2,000 employees. The company has built some of Canada’s most famous landmarks, including the CN Tower and the St. Lawrence Seaway, and is responsible for the construction of scores of airports, roads, factories, power plants and more. The company had revenues of CAD$1.11 billion in 2006, virtually unchanged from $1.12 billion in 2005.  

Recent results have been impressive. Revenues for the second quarter were up 31% from CAD $259 million the year before, to CAD$338 million. For the six months ended June 30, 2007, revenues increased 26% to CAD$580 million, from $459 million in the year-ago period.

Net income for the latest quarter was CAD$9.7 million, or $0.24 per diluted share, a substantial improvement from a loss of CAD $1.0 million, or $0.03 per diluted share, in the quarter ended June 30, 2006.

On July 18 Aecon announced an alliance between Italian industrial equipment manufacturer, Macchi and Aecon’s recovery steam generator manufacturing subsidiary, IST. Macchi is a leading European and Middle Eastern supplier of fired industrial boilers for the oil/gas and petrochemical sectors. The arrangement gives Macchi a North American presence, while Aecon will be supported in meeting its European and Middle Eastern expansion goals.

52-week low / high: $2.94 / $11.97
Shares Outstanding:  12.35 million
Market Capitalization:  $76.47 million

As the name implies, North American Galvanizing & Coatings, Inc. (Nasdaq: NGA) is a service business focused on galvanizing and coatings (immersing prefabricated client components, iron and steel products, in molten zinc).

The company operates through its wholly owned subsidiary North American Galvanizing Company, and Galv-Ohio, Inc., an indirect subsidiary formed from the assets of Gregory Industries, Canton, Ohio.

NAG’s other services include sandblasting, metalizing (flame sprayed), centrifuge spinner galvanizing, Corrocote Classic II painting and INFRASHIELDsm Coating. NAG’s operations encompass 11 plants in seven states from Ohio, Tennessee and Missouri to Texas, Oklahoma, Kentucky and Colorado.

Galvanizing provides corrosion protection to fabricated steel for use in a variety of markets, including petrochemicals, highway and transportation construction, utilities, communications, and a myriad of other applications. The company has over 1,700 customers nationwide.

Revenues for the year ended Dec. 31, 2006, were $74 million, up 54.7% from $47.9 million in 2005.

For the first six months of 2007, net earnings were $4.5 million, or $0.36 per share, versus $2.4 million, or $0.20 per share, for the first six months of 2006. Once again, a decidedly unsexy industry delivers some titillating profit opportunities.