AtkinsRéalis Group Inc. (ATRL.TO)

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.

He likes it. They guided down but he thinks the intrinsic value related to the 407 and an activist investor will both benefit them. At some point you will see SNC monetize their investment in the 407 and unlock value in it. He thinks the stock is worth closer to $70.

There were real concerns about the bribery scandal, but the company consists of hundreds of well qualified engineers diversified globally. They are into the big projects that everybody is talking about. Well run. Just before the oil/gas sector when into the tank, they acquired a company that was heavily involved in that area, and he sees that whole sector turning around and being much more profitable. The stock is down 10%, so it is a buying opportunity. Dividend yield of 2.01%.

This is a company that is going to be active in infrastructure everywhere. Fiscal stimulus will be good for them. One of the drags on the stock over the last few years has been a slowdown in new mines, etc. It is behaving very well relative to the market.

(Top Pick Jul 6/15, Up 34.87%) The ethics scandal has been working itself through. Business continues to come. They did not lose any business because of it. Now Trudeau is spending tax payer money on infrastructure, which benefits SNC-T.

She is not a fan of this company. They have operating problems, however there is value in the stock because of the ownership of the infrastructure asset, which just reported numbers and the traffic was higher.

Have done a great job in turning this around. Has started to look at this again to see if there’s something here. Valuation wise it is not super expensive. If the Canadian and global infrastructure projects come back, especially on the energy side, this company could come back to the fore again.

People hated this, because previous management got into trouble with questionable, ethical things they did. People are starting to warm up to it now. Current management is fabulous and business is rolling in. He likes it, especially now, because it will be one of the main beneficiaries of the Trudeau government increasing infrastructure spending. They are also a highly on un-leveraged company, and will be making some acquisitions. Dividend yield of 2.02%.

If you see a revival in commodity prices then definitely keep it. He did own it and sold in 2013 and did not see most of this recovery. They have done an amazing job. 43% of revenue is oil and gas related. 19% is government spending.

(Market Call Minute.) Kind of the middle of the pack on all his metrics. There is this perpetual potential sale, and then there are all these perpetual issues with the past dealings on contract and fraud, etc.