AtkinsRéalis Group Inc. (ATRL.TO)

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.

This whole group has traded down. This is a cyclical. At these levels, and if you have the appetite for some political risks, it is very attractive at these levels. He likes this company moving forward.

(Top Pick May 22/14, Down 19.14%) They are going to fight the charges. The employees left in the company had nothing to do with it so it is a pity to punish them for it. They are forbidden from bidding on Canadian government contracts now. The valuation is reasonable. They have infrastructure assets they are monetizing.

Highly volatile stock but everything in it is old news. The latest thing to hurt them were criminal charges from the RCMP based on what happed to them in the past. Canadian law states if you are a company and convicted, you can’t bid on government work forever. The company has not been convicted yet. This is an election year in Quebec and this is a Quebec company. He thinks this law will likely be changed. They raised their dividend and companies in trouble don’t raise their dividend.

The scandal appears to continue to weighing down on it. It has dropped a long way from its recent high. From a technical point of view he would look at $34-$36 to be a good cheap target price and would result in a good rebound.

He likes some of their assets as well as the company as a general rule. Doesn’t own it because he thinks it is too expensive. If you can see it below $30, he would seriously look at it. The new CEO is doing a good job on cleaning up the place, but they will still have to face some of the stuff.

The problem is that they keep releasing goblins out of their closet. He wouldn’t be gutsy enough to buy this.