AtkinsRéalis Group Inc. (ATRL.TO)

Sold her holdings when they were having problems and wanted to wait for the dust to clear. As it turned out, some of their senior executives have been dismissed and/or charged with inappropriate activity. Have new management in place now. Recently made an acquisition to expand their end markets. She is still not ready to buy. Feels energy prices are going to impact some of their markets. Prefers Fluor (FLR-N) which is more global.

Doesn’t own this because they have been so caught up in the International scandal situation. Mr. Card has done a tremendous job of repositioning the company and cleaning it up, but there are still a number of people with charges outstanding. It is just a wildcard in the group. The 407 is a valuable property, and if they wanted to monetize that it could be a tremendous benefit. However, if the ruling comes forward that because of the bribery scandals, they couldn’t apply for any government contracts, it would almost be a company breaker. He would prefer some of the other companies in that sector.

One of his bigger exposures. A long running Canadian institution and very strong in engineering/construction globally. Last year it got hit by the scandal of bribery in Libya. Have new management and have done a big acquisition that will be changing the business mix, so the future looks much brighter. At this stage, they have to overcome a little bit of oil price induced weaker businesses. With their assets, they can monetize and generate a lot of returns for shareholders.

Has been doing the same thing as the engineering group recently. They completed the purchase of a British engineering firm in oil and gas. A well run company. But in the mean time they are behaving like the rest of the group.

Doesn’t want to go to energy right now because he is still a little uncertain about price. Acquired an E&C energy related company this summer, so they are now about 15%-20% energy related, but it is infrastructure. These are big long construction projects to be built out as new development in energy. He thinks you can make the argument that asset value is still in the $60’s and probably in the spring they announce the sale of the #407 for something like $3.2 billion, which is $20 a share in cash. Yield of 2.34%.

Under a lot of pressure now because it has made a $2 billion acquisition in the oil/gas sector. He can't see this turning around all of a sudden.

This has had unique problems, including corruption and related lawsuits. There has been a lot of management turmoil that is possibly not over yet. Have huge contracts in a lot of places where some strange types of business dealings go on and are being more closely monitored. Corporate governance has not been great. There are better places to put your money.

The company immediately got rid of people who were behind the scandal. At the same time they brought in a lot of new business. Bought a British oil stock and the recent oil price drop caused the stock to come down needlessly.

Looking at the infrastructure space, 66% of this company’s revenues are coming from Canada. He would rather look at an industrial name that is going to have more revenues from other parts of the world that are growing a bit faster.

A tremendous company. The real concern here is if criminal charges are brought against the company, which will exclude them from future contracts with various government agencies. They have already, more or less, proved in court that the wrongdoing was not at the high levels of the company, but more of a division situation. In fact they have won a case against one of their employees.

Feels it is somewhat fairly valued, but does feel there is a long-term value proposition to the story. A lot of the problems they had in the past look to be behind them. They have been able to demonstrate that they can still operate and win business going forward. Good long-term hold. Be prepared to add when the market sells off.

Likes the sector. It has done very well. They had some issues that are now behind them. Just bought a large construction and engineering firm.

We began a new uptrend in mid 2012. There is now no reason not to own it. You reduce at the top of the trend channel and accumulate at the bottom. It looks fine to him.

They are trying to be out of the doghouse. They got over all the lawsuits. They sold off some assets. They are getting into higher growth assets. The stock chart looks pretty decent.

(Market Call Minute.) He would participate on a pull back.