AtkinsRéalis Group Inc. (ATRL.TO)

Outstanding company. 10^th largest engineering company globally. Had a series of issues starting with Libya and Bangladesh. If it was contained to countries that have had really bad governments they could probably weather the storm of scandals. They are now tarred with the brush of the corruption commission in Québec that is looking into the whole construction industry.

Has cleaned house and has a new CEO and soon, new Board members. In the meantime, it continues to win new contracts in Canada and elsewhere and has a record backlog of more than $10 billion. When the headlines disappear the stock price will rise back to the $50+ level last seen in 2011.

Has been a crazy story to follow. When he sees red flags like that he stays away. Valuation is not wildly cheap, although they are expected to grow their business next year. They are doing the right things. At 10 times earnings it would be worth the headline risk, but not at this valuation. Prefers other names.

Sold his holdings at around $50. Coming off now because of the 2^nd primary scandal that has come up. Chart shows a cluster this year at between $35 and $41. This whole space is rather interesting. He would probably be interested if it held at about $36.

A former VP was arrested in Switzerland over allegations of money laundering and fraud. Seems that there is the risk that this has been going on far longer than people had thought. Also, who in the company knew? If you own, you may want to consider your position for tax loss selling. There are probably better ways to invest your money.

(Market Call Minute) He is not a bottom fisher.

(Market Call Minute) Quite cheap and a buy under $40. Just got a contract today with a mine.

(Market Call Minute.) Has broken out above the 200 day moving average so it looks interesting.

Stock sold off because of corruption of “a few” people but is starting to come back. Still have a great backlog of business and a lot of new stuff being announced. This week they announced a joint venture of nuclear with Toshiba in Britain. In a couple of years, the stock is going to look like it was a bargain now.

If you look at the company and its multiple divisions, they had a problem in one division in the international side which is fraught with payoffs and under the table stuff. People involved have been thrown out and they have a new president. This is a company that just has all sorts of talent and also willing to put their money where their mouth is. They own a piece of the #407 which Ontario should have never sold. Very reasonable.

Biggest concern is the position that the Québec government has taken and the possibility that shareholders don’t have rights. When you have a government that is prepared to potentially intervene in corporate transactions, that is a real concern.

Had a big drop early this year. Now it has reached a point where if you take out the 407 Highway, it is trading at about half of its US competitors. Although there will be headline risks and maybe some class-action lawsuits, the stock is very, very cheap. He added more at $36 because there is probably a good track to the mid to low $40’s, which may be his selling point if it went there right away.

This stock has been going through a period of difficulties. Chart indicates that the trend is still on the downside. Does seem to be trying to form a base. It still has a lot of uncertainty. Wait until there are better technical signs.

Thinks this stock will mark time. There are lots of issues surrounding the company. Technically it is below the 50 and 200 day moving averages, both of which are falling.

Their last quarter was atrocious. Big problems here. But there is value. At the end of the day you have concession assets that are worth $20-$25 a share. The rest of the business is being tossed at you for nothing. Have a new CEO. Once the market starts feeling better you can see the stock in the mid-$40.s.