AtkinsRéalis Group Inc. (ATRL.TO)

(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.

The company still can’t tell you where all the money went, which is shocking so he wouldn’t invest in this company. Also, the Québec government has made it a political football now.

(A Top Pick Sept 14/11. Down 26.5%.) Sold her holdings at about $36.50. Stock has been in the penalty box. Has a new CEO starting in October. The Street is going to want to see what his plan and strategy is for the company. Recently reported disappointing earnings.

Had that horrific decline from issues in third world countries. They have to get over that. Global leader in engineering space. Somewhere Canadians can excel. Now he has the chance to objectively look at it with a much lower price point. We are cutting back on mining globally, but not in the oil sands. There could be a unique opportunity here. His question is if he would increase income by using this to replace a stock in his portfolio.

One of the world’s premier engineering and construction companies. Trading at a very low multiple and a very attractive price. Nice yield. Just brought in a new CEO who knows the business and can grow the business. Will be significantly higher in 2, 3, 5 years.

Sold his holdings. It will take a while for them to get out of the penalty box.

Rode it down during the scandal. He exited in the spring. Feels there will be a continuing overhang due to RCMP investigation. Potential to be dragged through the mud in the Quebec investigation. Better opportunities out there.

(Market Call Minute.) Buy it if you are truly a long-term investor.