Aecon Group Inc (ARE.TO)

They are doing the Eglinton subway. They have been around since the last 1800s. Reasonable valuation at 12 times next year’s earnings. They are off their highs because of western exposure, but little of that exposure is to the energy sector.

(A Top Pick Feb 6/15. Up 26.6%.) The big driver was the final sale of their concession in the Quito Airport, so they now have no debt. They should benefit from the upcoming fiscal stimulus. Not in the US in a big way, but still feels there is enough opportunity in Canada to win their fair share of the BBB work.

This company stands to win on infrastructure in Canada. A well-run company that has relationships with the oil/gas sector plus much more across Canada. Doing quite well considering that it is attached to the West.

Seasonally strong from end of Nov to Apr of each year. It is not quite set up just yet so wait until it gets above the point of resistance, then it will be a really good trade.

(Top Pick Feb 6/15, Up 27.14%) They have a bog back log but had disappointing news yesterday. He is sticking with it. They will be debt free soon. They will win a fair share of projects from Canada’s new government. They have a low payout ratio and are diversified. Their backlog is at a record high.

There has been quite a bit of talk because of possible infrastructure spending in Canada. Thinks this is the best way to get the infrastructure spending of the Liberal government and/or the NDP government in Alberta. This is pretty well diversified across Canada. Valuation is not expensive at under 6X cash flow. They keep outperforming every quarter. There is probably another $4 upside to the stock with $18 being a fair price target for it.

(Market Call Minute) 33% is infrastructure spending and they will benefit, but it will take a while.

Investors are rethinking this one. A significant portion is energy, but maintenance and regular contracting is significant. New building is only half of their energy exposure. Their nuclear projects are very sophisticated and higher margin. Buy today and over the next year or two their margins will slip up a bit.

They have a 47% energy exposure but they really beat on their infrastructure. This is a name he has been buying aggressively. He likes it. You can still buy it at these levels.

(Top Pick Feb 24/15, Up 21.49%) It pulled back because oil pulled back. They had this big monetization with a project in Mexico. He believes in companies with strong back logs.

Just had a fantastic quarter, which sets up a nice trend for the remainder of the year. One thing that is really positive is that all of their infrastructure stuff is kicking on all cylinders. He is looking for a target at one of the old highs at about $17. Good risk/reward.

He is very familiar with this stock, originally recommended it and owned it until the moving average was broken and the trend line broken in 2014. After that, the stock developed a major downtrend line. Stock is still below this major downtrend line. It is below its 200 day moving average. However, he is impressed that is already has a double bottom, so it has the potential to have a “W” formation. Recommends that you hang onto this stock. If it falls below $10, you should get out.

(Market Call Minute.) Engineering/construction companies are interesting and are a relatively good place to get some exposure. Prefers SNC Lavalin (SNC-T) which is cheaper and a little more international in the US.

Construction in general, particularly commercial, is going to be a thing for some time to come in Canada, but is really going to be ramping up in the US, and that is where you should be looking, where the real growth is going to be.

Engineering/construction company. Benefiting from infrastructure built projects in North America. It grows through acquisition. There is nothing wrong with this company. Energy is one of their end markets, but it is not as large as some of the others.