Bird Construction (BDT.TO)

Has owned this in the past. Just had some numbers out that were pretty good. Has a very healthy dividend, and their payout ratio is less than 100% which is nice. Expects they will continue to get a lot of work from infrastructure that is going to be upgraded over the next couple of years. Also, expects they will get some work on the Fort McMurray situation as well. If you could Buy on a pullback, that would be ideal.

Would steer clear of construction/engineering firms. So much depends on 1) winning contracts and 2) completing the contracts at a profit. Historically, in order to win contracts, companies might bid a very finely calculated price, and then get surprises on completion that will hit their profit margins.

Trudeau has done a good job of guiding the street about infrastructure spending increases. This company should get some of this money.

Has held in remarkably well given the manufacturing slowdown in Canada. One of his largest holdings in one of his funds. One of the 2 cheapest stocks in the universe that he covers. A really strong ROE at 23%. Trading at 4.5X Price to Free Cash Flow, so is really cheap. Dividend yield of 6.5%. Pristine balance sheet.

(Market Call Minute.) This is engineering and there is going to be more money coming from the federal government into this area.

Attractive dividend yield of 6.5%. There are a number of infrastructure projects that are going to be happening, and this is probably going to be a beneficiary. With concerns about a slowing economy, and part of their business is in oil and gas construction, he thinks the market is concerned about that.

Wants stocks that will benefit from a cyclical recovery, which he is expecting, but without breaking the bank while you wait. A general contractor. A diversified revenue mix. They are in industrial residential wastewater. Scores really well on value with very strong price momentum. Great ROE at 23%. Cheap on a free cash flow basis. Solid balance sheet with about 25% of their market cap in cash. Dividend yield of 5.43%.

Has a below market multiple at about 15X. They have about $4 per share in cash. Analysts keep on increasing their estimates to catch up to what the company is actually doing. 5.5% dividend yield.

This ought to be benefiting from this infrastructure motivation that appears to be firing up in our new young Canadian leader.

They have exposure directly to energy bit also to construction out west. He has been short the stock since the energy decline.

This is a stock that has done well and pays a dividend. Getting beaten up a little bit in this market. If you are concerned about things slowing down out West, you want to factor this into your valuation. These construction firms can lose contracts fairly quickly. Pipelines and backlogs are not guaranteed revenues, and can disappear if oil prices get really weak.

When he looks at the sector, one that he is contemplating adding to his portfolio is Aecon (ARE-T), which reported yesterday and the stock fell off. Feels the fundamentals are a little bit better. At this point in the cycle, you are really making a bet that there will be an increase in infrastructure spending, which he thinks we are on the verge of.

Thinks there is M&A activity. He loves this whole sector. $12 is a good buy range. Thinks it could go a little bit higher toward the top of the channel. Loves the sector and the company.

Extremely well managed and conservatively managed company. You never have to worry about their balance sheet. They are on the edge of a pretty big infrastructure spend in both Manitoba and Western Canada and will do well out of that. Has been looking at this again. Good potential. 5.4% dividend yield.

Churchill Corp (CUQ-T) or Bird Construction (BDT-T)? Would have a hard time choosing between these. They have different components. This is a very, very well run company. They are probably the best in the sector in terms of extracting margins, consistency, dividends and shrewd acquirers.