AtkinsRéalis Group Inc. (ATRL.TO)

He is still not a buyer of this. Wheels of justice grind fine, but exceedingly slow. We still haven’t seen the last of the inquiries, and thinks there is going to be more dirt coming out. He is wary at this stage and doesn’t really want to be involved with it. The government is going to spend a lot of money on infrastructure, and no doubt this company will get its share of that business.

Model price has always been below. $25.86. If it fell to $27 he would be a big buyer. They are clearing up the bribery scandal.

(A Top Pick Feb 18/15. Down 6.13%.) This has always been a disappointment. Great company. It trades well under asset value, but there is this little black cloud that hangs over it. It has lots of good engineers and is in the right areas. He is hoping they sell Highway #403 and do a special dividend. Any time it gets under $40, it is probably a Buy.

The timing on these short term moves is always hard to predict. They are in a turnaround after troubled times and write-offs. The stock has come off the way it has, and yet they have the 407. Their core constriction business has been impacted by commodities. It is starting to look interesting. If you strip out the 407, the rest of the business is trading at a very low multiple.

Sold her holdings a few years ago when they got into all their problems overseas and the change in management. These types of companies will eventually benefit from the infrastructure spend that we should see in Canada. One of the liberals promises, and that should eventually flow through. They also have mining, oil/gas exposure, which is not doing so well. Just got a contract for the refurbishing of the nuclear facility. This will not give an immediate pop. It is a very long-term type of thing.

Has been involved in a number of scandals over the last number of years. They won massive contracts, but seem to have trouble converting a lot of that money into profits. Have suffered from serious management problems over the years. Not a huge fan, but more of a “wait and see”.

(Top Pick Jan 21/15, Up 0.76%) It has been flat for the year so he is positive now. Has an asset value in the $50s. The 407 is doing fantastic. Everything else is at a discount. It is mostly international in exposure so he likes it. They have their head around regulatory problems. Settlement could come any time.

This is worth while looking at. They have gone through all the trouble with the scandals, etc., but thinks they are getting their act together. If the infrastructure program develops and proceeds, this company will fully participate in that.

(A Top Pick Nov 3/14. Down 9.3%.) This is not the same company that it has been penalized for in the past. Has new management and is very unlikely to do what it did in the past. There are still lots of headline risks based on things coming up from the past. With infrastructure becoming a major platform for the new government, they are and will continue to be one of the major beneficiaries.

(Top Pick Dec 2/15, Up 4.74%) It is almost like you could pick it again. They are getting through all the past sins and winning a lot of contracts. He thinks it will continue increasing.

He feels that the 1^st thing that is going to win with this new Liberal government is infrastructure spending, and he thought of this company along with Stantec (STN-T), Aecon (ARE-T) and a couple of other engineering companies. All the stocks he looked at had fair setbacks and are starting to reverse on the upside. Of the 3 of these companies, this one offers up about a 20% upside, the least of the 3 with Aecon being the greatest and Stantec in the middle.

(Top Pick Sep 5/14, Down 28.83%) The scandal and the contracts that hurt the company are all in the past. They sold yesterday a 5% stake in an African airport. They have strange assets.

He shies away from huge controversies. When you strip out their infrastructure assets and just look at the core engineering company, there is value. Hasn’t taken a real hard look at this.

Not sure of the seasonality on this, but technicals are starting to show some signs of bottoming. It is probably trading very close to its 20 day moving average. Strength, relative to the market, it is slightly positive. Indicators are starting to look okay, but they are mixed. Wait until you have more confirmation from the technical indicators.

Have been trying to reinvent itself and stabilize after the scandals that it underwent with briberies in foreign countries. New management has largely addressed a lot of those problems. They are looking to sell some assets, including highway #407. He doesn’t know if all of the issues have been settled yet. Valuations look a little lofty.