AtkinsRéalis Group Inc. (ATRL.TO)

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.

He stepped in when it dipped under $40. He likes it and it has great potential. They have existing investment assets that have great profit potential, like the 407. The scandals are more or less behind them. They have cleaned house quite effectively. The world really needs the kind of projects they are capable of doing. He would add under $40.

It has been a volatile stock because of bribery scandals, etc. These are all temporary issues. It actually is a company that has great assets and great engineering assets. Have a lot of concession assets that generates a lot of cash flow, with the optionality to sell these assets. A good business and trading at a reasonable valuation. Because of the possibility of a 5%-10% move based on a press release, it is not worth having in your portfolio.

Has taken a bit of a beating over the last several years, but has had a decent recovery. This industry is not one that he invests in a lot because he finds the predictability of these businesses very difficult. It is kind of a trading stock and at this point, if he owned it, he would probably be selling it. There are rumours of a takeover, so you might want to Hold on for a month to see what happens.

SNC Lavalin (SNC-T) or WSP Global (WSP-T) for a long term hold? If you back out the 407 assets, this trades at about 13X earnings. The entry point for this is much better. Have almost all of the scandal behind them. Still have the settlement to do which he thinks comes in the next few months. Probably a one-time fine and then moves on. If they do that, the stock should probably go into the low $50. He would prefer this one.

She sold her holdings a couple of years ago when the problems initially started to surface. Probably most of their problems are now behind them. They have new management in place. Made an acquisition of a European company which is focused on the energy side. She prefers Fluor (FLR-N).

It looks like they are kind of getting past their legal issues. However, earnings forecasts have been rolling over, so when he looks at FMV, he only sees about a 6% upside move. There is also pretty strong technical resistance at around $48-$49. If it can break through that area and the earnings turn, then the stock could hit $60. $48-$49 is going to be a tough spot to get through.

He is a firm believer that the federal government will be changing the exceedingly punitive law that says if you are convicted you will not be able to do business with the federal government for 10 years. Thinks this is great value here.

Sold this when all the issues started to surface. It is always difficult to say if their problems are all behind them. Her concern is that what has happened could impact their future ability to bid. It seems like every few weeks something comes up. If you want to be in this area, there are other businesses that you could buy.

Doesn’t like their prospects. Has been plagued by management issues. They do have some valuable assets, particularly their ownership and some of their concession assets, like Highway 407. There is talk they may sell or spin that off. Many of the countries that they operate in are experiencing slowing growth. Also, the weak oil price is an issue for them. Fully valued.