AtkinsRéalis Group Inc. (ATRL.TO)

(A Top Pick June 17/16. Up 4%.) This would have been up more, but it is in the midst of making an acquisition in the UK. The acquisition will give them more worldwide exposure, and lessen their dependence on the energy industry. This is still a Buy.

Doesn’t think there is any major concern with this company. They had some issues at one time, but it has turned around. This is really quite good.

This is on her watch list. She wants something in the engineering/construction space, and this is a good candidate. It is much more global than some of the other players.

They made an acquisition, and you have 3-5 years now of run rate. Big synergies and lots of growth coming. If you take out the #407 toll road you get a stock that is now trading at over 13X earnings. For industrial international growth, it is about the cheapest thing out there. The court cases are diminishing and is coming to the point where it is inconsequential. Dividend yield of 2%. (Analysts’ price target is $66.)

They have a couple of silos. A pure construction play. They have a mining business which represents quite a small chunk. In 4 or 5 years, this has really been going nowhere. Thinks the worst is behind them. The potential acquisition of Atkin out of the UK good be really accretive. One of the big challenges they have is the street’s view of their guidance going forward and their free cash flow. Feels both of those will be addressed with their acquisition. Dividend yield of 2%. (Analysts’ price target is $64.)

They had problems in the past but now he likes it going forward. He bought early, but it has worked out for him. They continue to get lots of contracts. Most recently it has sold off and is now the cheapest engineering and construction company in North America. This is because they have an inefficient balance sheet. The market expects them to make a large acquisition and take on lots of debt and that it will hurt them. He expects them to buy back stock. An acquisition would be good for them, making the balance sheet more efficient. It is cheap here. They still own highway 407 where the value continues to go up and up. There is not a lot of goodwill built in here. (Analysts’ target: $64.00).

The US infrastructure spend is over the 8 years of the administration. It will not move the needle all that much, but this company is one of the top ones to benefit from it. We are back up at the levels when SNC-T had the problems mid-2014. He would buy on dips, but does not see a big upside breakout here.

(A Top Pick March 4/16. Up 19.8%.) This has eased off recently, so he has started to pick up more stock. It is the emphasis on infrastructure and new construction that he likes. He sees long-term growth potential.

A long-term growth stock. It sold off a month or 2 ago. With various countries contemplating major infrastructure expenditures, the company is well-placed to benefit. He likes the long-term capital appreciation potential. Dividend yield of 1.99%. (Analysts’ price target is $64.)

It would have been good at $38, but it had a good run in 2016. They own part of the 407. He does not know if the bribery stuff is completely behind them. It is expensive here. $44.68 is the model price. Part of it is an asset place. In any pullback he would be a buyer. It is hard to buy it here.

Construction/engineering is really good for the next 5-7 years. Chart shows it is trying to break out at around $57. The longer-term pattern is a “cup and handle” formation. A break out at this point is pretty significant. He has a target north of $80. Dividend yield of 1.70%. (Analysts’ price target is $63.36.)

SNC-Lavalin (SNC-T) or Brookfield Infrastructure (BIP.UN-T)?Infrastructure stocks have been particularly strong lately, and a lot of that has come post the Trump victory and expectations that there is going to be more spending, etc. Things have gone up a little too fast, so he would be a little wary of stepping into these at this point in time. He prefers Aecon (ARE-T) whose valuation seems to be a little better in terms of what he can expect to earn over the next few years.

It will do very well with all the infrastructure spending that will go on, but in the US if you have a drive to some protectionism, you would have to see how this shakes out and can Canadian firms bid in the US. Even the Canadian infrastructure spend will cause it to do well. It will be 3 to 5 years for the money to trickle down to this company.

A diversified, global E&C company, a good solid name for someone who wants to have exposure. The whole group has moved on infrastructure spending in Canada and what we are going to see in the US. The group has had a nice move up. She wants more direct exposure to the sector, and is not sure if it is going to be in Canada or the US. This one has had a good run, so if you want exposure she would not pay up right now.

(Market Call Minute.) Infrastructure buildout has come into all of these stocks a little bit positively, and will see if it ultimately happens. He doesn’t own this because the dividend is not quite high enough.