AtkinsRéalis Group Inc. (ATRL.TO)

A very cheap stock vs. Canadian and US peers. A Canadian company that generates revenue outside Canada--he likes that. It recently broke out and he thinks will continue to make new highs, easily to $70. Their oil and gas business is a tailwind. (Analysts' price target: $69.96)

The infrastructure space has been a little disappointing, but SNC has made a good move. Now, SNC is hitting technical levels (limits) now. A good hold for the long term as global infrastructure spending increases.

The company has come through the investigations into bribery and there is increasing spending on infrastructure global. This is a global company that will benefit from that trend over the long term. He doesn’t own the stock but he can see a case for buying it.

They own it, bought it after the corruption scandal came up. They have new management and made some good acquisitions. But the stock still hasn’t been moving too much. Not a lot of money has come out of the governments for infrastructure spending. Thinks long term SNC is a fabulous name to own.

(Past Top Pick on May 15, 2017 Up 9%) Their return for the next 12 months will be higher than 9%. They just settled with provincial governments over the 2012 bribery scandals, though still have to settle federally. Excluding their highway 407 operation, their mulitple is less than 10X earnings. This should trade in the mid-$60s ($55 today).

Infrastructure has been slow lately. Meanwhile, we've been in a strong stock market. Wait until this breaks out above $58 before buying. Right now, this is stuck in neutral. If you have a long-term view of say 10 years, you'll do well.
Otherwise, wait for that breakout.

Good backlog. Exposure on the oil and gas looks good. (Analysts’ price target is $69.73)

Their steady growth ended a decade ago, then they got into a governance (corruption) scandal overseas. To evaluate them, look at their various operations. They own the 407, a toll highway, their crown jewel. But they also do engineering and construction, which is cyclical, and an area mired in legislative roadblocks. Not one he'd buy.

(A Top Pick July 7/17 Up 0.4%) They were expecting a little more follow-through on the Trudeau promises to increase infrastructure spending. Although the work is happening, it has not yet paid off. He would continue to hold it.

The name has gone nowhere for quite some time. It has formed a long base. If we break out he thinks we will get to $70 quickly. Someone has been unloading this but he thinks it is a big mistake. (Analysts’ target: $69.79).

(A Top Pick June 30/17 Up 1%). He has been a little disappointed by its performance. Someone does not like this stock, because the news about the company is much better. If it can break above January highs, it would have room to run he thinks. Be patient.

This is facing a big sideways consolidation that is spending too much time going without making new highs he says. It shows no signs of breaking out.

(A Top Pick March 23/17 - Up 9.5%.) It should be much higher. It has done some good acquisitions. He is waiting for the Canadian Government to do more infrastructure spending as opposed to talk about the infrastructure sending.

(A Top Pick April 10/17 - Down 2.5%.) He likes the pattern. Still would be a buyer at these prices.

Surprised about how engineering and constructions companies’ stocks have been soft in Canada. He thinks there is a positive backdrop for infrastructure given the Liberal’s plan to increase spending in this area. Maybe the Canadian market is a little clouded by the discussions surrounding NAFTA.