Aecon Group Inc (ARE.TO)

Chart shows a strong uptrend from last year, but broke down at the beginning of May. In this case, the last Low hadn’t been taken out, but there is some danger as it broke the uptrend. Before Buying he would want to see it a least consolidate and maybe start to move up. There are probably better places to look until it shows some sign of life.

Chart shows a nice long upward trend. If you are a long-term investor, you could see this come back to about $14. If comfortable with that, he wouldn’t worry about it too much. The whole infrastructure space has really been thematic in the last couple of years with the big disparity between expectations of what earnings will be like and governments. This was a real sweet spot to be in. This could be a rotation into a better name right now. $15-$15.50 would be a good place to step in. If there is a breakdown from there he could see it going down to $12.

Had owned, but Sold and went on to SNC Lavalin (SNC-T). Not as cheap as it used to be and this is not the best entry point. Try to get it a little bit lower. Infrastructure is still under-spent for most of a generation so he likes the general play of it going forward.

Doesn’t follow this closely, but it has performed well and if you own, he would be inclined to take profits. One of the challenges in the engineering/construction business is that it can be “boom and bust”. When oil/gas sector is doing well, they win a lot of contracts as well, but there are risks that when the going gets tough, they can be locked into contracts that could have costs overruns.

Can’t seem to get all of their segments to fire at the same time. Trying to expand their margins to the 9%-10% level. Have some assets for sale which could be accretive to the share price. BC Hydro has an $8 billion project, which would be a very good project for them.

Likes this one. Looking at upcoming trends in the marketplace, you have to look at infrastructure. Federal government has kicked in $14 billion for infrastructure, provinces have kicked in billions as well, and all we have to do is drive around and see how our infrastructure is just falling apart. Has a little bit of issue with the backlog, which is not as strong as he would like to see. (See Top Picks.)

A great company. There has been some issue with the Ecuador airport. They are going to sell it. Backlog has been improving. Just announced a big project in BC.

This was a hot group and then you had the correction and now they are starting to go again. We are now seeing build out in the private sector. Get a half position and then build out around it.

Is expensive. The stock is extended from a historical point of view. It will really have to break out if it is going to go much higher than this. He would be selling at this point.

(A Top Pick Nov 29/12. Up 46.41%.) There is a lot more infrastructure going on right now. This is involved in the oil business as well. Thinks there is a lot more on this. Just came out with a five-year 5.5% convertible debenture with conversion at $20. Still a good Buy.

At the upper end of their operating margins right now. For these companies, that he looks at as pure cyclical plays, you play the 2^nd derivative in terms of where they’re at in the margin cycle. Probably have a bit more. Have done very well but it has been against a lot of government stimulus, such as highways and infrastructure. Not a place he would want to put money. You would be better Selling than Buying.

(Market Call Minute.) Bumped up to a level where he had sold his stocks not that long ago. (Has just bought a convertible debenture on it.)

This will be one of those companies that benefits from infrastructure increases but they are also tied in some portion to the metals/mining industry (earthmoving). Metal and mining is going to be somewhat muted at least for the next year or so. He doesn’t see a great deal of upside on this right now. Would prefer the Brookfield Infrastructure Partners (BIP.UN-T).

(A Top Pick Nov 29/12. Up 39.45%.) Still believes it is going a lot higher. Could have been his Top Pick today. Likes the oil infrastructure area and this company is getting into that now. Building infrastructure for small pipelines to join up with larger pipelines. Came out with some really good earnings last quarter. Great guidance going forward. Cash flow has been bang on. There are more and more jobs coming into the pipeline.

Has undergone a tremendous transformation over the last couple of years. Have been winning more contracts. The problem is that the price has moved up quite a bit to reflect this. Yield is around 2%. Expect we have seen most of the capital accumulation that we will be seeing, at least in the interim. Prefers Churchill Corp (CUQ-T).