AtkinsRéalis Group Inc. (ATRL.TO)

(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.

Would stay away from this. There is some good value in the company, but when you have the RCMP coming in the door and collecting records, he is uncomfortable with that.

(Top Pick Mar 20/15, Up 17.53%) It was controversial when he bought it. It s a quality company. The fraud did not affect the future of the company and they have restored their profitability. The balance sheet is improving.

They went through some headaches. They turned over a new leaf. They produce very strong earnings with operations globally and a strong presence in North America. Low $50s is a good entry point. A good place to nibble.

Thinks there is another 10% or so and sees it getting into the low $50 area. Winning a lot of contracts. If they sold Highway 407, they would get around $20-$22 in cash. He could see them paying a $5 one-time special dividend if that happened. If you crystallize a full 3^rd of the current price, you have a very much below average valuation on the E&C business. They will definitely be a beneficiary of any infrastructure stimulus spending by the federal government.

This stock has gone through quite a long consolidation and bottoming process, and has turned and made very nice new highs recently. There is a bit of a bid for infrastructure companies right now as there is a view that there may be additional fiscal stimulus in the Canadian market. This one is quite interesting.

Came out with some very good earnings. They have the highway #407 which could be liquidated, and maybe a special dividend for shareholders. Backlog is still quite good. The Canadian government is talking about putting money into shovel ready projects. Facing a preliminary hearing in 2018 over bribery allegations, but is a problem that has already been contained. Dividend yield of 2.23%.

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.