AtkinsRéalis Group Inc. (ATRL.TO)

They ran into a lot of trouble involving contracts in North Africa. There had been concerns about being limited in funding from world banks. The concern has always been if they could get satisfactory margins. He does not own it because of mediocre execution rather than corruption.

One of the largest engineering and construction companies in the world. Its history is construction with engineering being a part of it. There is less construction cost overrun risk to it. There will be some headline risk due to their having to pay a fine in the future on old news. There are lots of infrastructure projects on the horizon. (Analysts’ target: $69.00).

(A Top Pick Dec 28/16. Up 0.72%.) If it gets above $60, away it goes and will probably get close to $65, and then he would look for $80. This is one to hold for a couple of years. He would buy this one today.

(A Top Pick July 7/17. Up 3.24%.) In the last 3 years, companies with oil exposure have been under-earning. If you have a view that we are going to have an energy dependency for the foreseeable future, there will be a recovery in this business. This is a core holding and he continues to like it.

It was a messy beat this morning. They have adjusted engineering and construction numbers. They beat on margin. The Highway 407 is ticking along fine. They will have a 7% compound growth rate just from the 407. (Analysts’ target: $67.00).

Somewhat volatile. Has great potential. Thinks they are through the problems they had through the bribery situations. In the right place at the right time. There is going to be a lot of infrastructure construction going on. The #407 remains a great asset. Relatively inexpensive.

The stock has recovered from when they had the problems with their bribery charges. Have new management now. Earnings have been relatively flat for the last year, so they’ve done some acquisitions this past year, with the larger one being in the UK. The Atkins acquisition makes them much more global. Wait to see how the integration goes with the acquisition.

This has been a lower yielder historically. Did some acquisitions recently that will probably be good for them over time. This is a tough business. It is really project-based. They continue to increase their dividend slowly. Whenever you get a steadily increasing dividend, you get an opportunity with a large pullback to get a good yield.

The period of seasonal strength is from the beginning of October to the second week in January. We are forming a nice little base, are in a trading range and there is a good chance it will break out.

Sell SNC Lavalin (SNC-T) or WSP Global (WSP-T)? He would keep this one, simply because the value of the calculation of its 16% stake in the #407. The owners can raise the fees and there is still a 20% capacity. Plus, the government is building the eastern extension, which will be more traffic into the privatized bit.

Your choice of infrastructure stocks? He likes Stantec (STN-T) (See Past Picks) and this one. They are both basically waiting for governments to stop just talking about infrastructure and actually putting money towards it.

A great name for exposure to infrastructure spending, which seems to be going on in every country globally. The concerns over the bribery, etc. is largely behind them. They could gain meaningfully out of some of the contracts going forward on infrastructure spending. He prefers Brookfield Infrastructure Partners (BIP.UN-T)

(A Top Pick October 7/16. Up 6%.) He still likes this though it is more volatile than what he likes at times. It’s in a segment of the market he believes is going to benefit from various stimulation programs. Well positioned to take advantage of any general expansion. Thought they would get crossed off the list for Government contracts. The industry is notorious for money under the table activity, particularly if you are in Third World projects.

It has the 407 and with the recent pullback it is cheaper than its comparable. Without the 407 it is 12 times earnings. It has a 2% yield. (Analysts’ target: $68.00).

It falls right in the middle of the pack. Price momentum has been all over the map. There are rumours about spinning out a division now and then. The balance sheet is fine and it has a yield.