AtkinsRéalis Group Inc. (ATRL.TO)

(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.

Doesn’t follow this closely. With all the problems that have surfaced over the last few years, he is not too interested. Valuation is reasonable, but there are a lot of other stocks where he feels a whole lot more comfortable.

It has fallen to pretty good support. Upside potential is about 25% from here. Valuation is as low as it has been in this entire bull market since 2009.

The company has the work, but they just can't make money doing the work. Don't think they are out of the woods with their legal problems. Could be subject to national and international sanctions going forward. They have changed their management and are trying to stay out of dirty business. However, they are still not able to show they can make a lot of money on their ongoing work.

This company is doing reasonably well. Has Highway 407, big government building type business and is a lot in mining and oil and gas. It had some political and legal problems.

The Government of Canada said they are changing the anti-corruption rules. SNC cleaned themselves up. This new regulation no longer prevents them bidding on government contracts for 10 years. They are still winning new contracts. It is costing them because the world bank has them shut out still.

He owned it before they ran into regulatory problems. He wonders if they are underbidding on contracts. The margins are not very impressive as of late and it hit earnings. Legal difficulties are still a wild card. They may be barred from doing some kinds of work. Earnings are very inconsistent.