Stantec Inc (STN.TO)

They just sold their construction business, which is a catalyst. Their contruction obscured their consulting business which will shine thought now. Got a good balance sheet so they can contine to buy. 17% EPS growth. It's trading below its peers. An infrastructure play, so even in a late cycle they can still attract capital. (1.65% dividend yield; no price target given)

STANTEC vs. AECON - He's studying the infrastructure space closely. He has no criticism about Stantec, but he prefers Aecon for its balance sheet ($260 million in cash) and low debt. And its new CEO has global experience, which is a catalyst for Aecon and will help them go global. He hasn't bought ARE yet, but will.

This is an engineering company that bought MWH, which was a water infrastructure company that had a construction division. They had not been in the construction business before. Construction can have cost overruns that can bite, and this has happened to Stantec and it has hurt their earnings. They are going to put this business up for sale. This company is a prime beneficiary of infrastructure and water spending. He owns this and SNC-Lavalin and sees a good future for both. He thinks that Stantec is better for the short term than SNC. (Analysts’ price target is $37.27)

He prefers SNC. Stantec is recovering. It's very US (California)-oriented. As the US recovers, this stock is starting to move, but SNC is cheaper.

Good company. Well managed company. Have been rangebound for the last thee years. Good dividend. Few of the companies that score 100 on dividend quality on his model. Steady cash flow. Low beta dividend growth story.

He has WSP-T in this sector and he prefers it. You will get a rally with the market. This stock has gone sideways for a long time.

It is a Canadian Engineering company. Last year it bought a highly sought-after water company. He has had a number of holdings in the water industry. The acquisition inherited some cost overruns on the company and are slowly getting over them. They will slowly move on. They have raised their dividend every year. (Analysts’ target: $36.31).

(A Top Pick May 1/17, Down 8%) The governments have talked about all the infrastructure spending but we are waiting for it all to come. We are talking about it being deployed.

The problem with infrastucture companies is that projects are bid on in advance, so the company loses some money that's no recoverable. The sector looks good. There's a lot of activity in Canada and especially the U.S. which should pick up. Stantic has been flat, but should get back into the groove. Solid but hold it.

Their earnings were out yesterday, and he still needs to analyze that. Trading at 17 times vs peers 18 times. Much of their higher costs were due to the recent integration they had. A 2017 story. A fine name you could continue holding here.

Good performer in their space, but these companies can win contracts whereas the ability to make money off those contracts is up for grabs. Construction is a tough business to make money. He's not in any company in this infrastructure space.

He is trying to find companies that are trading at fairly low multiples. This is trading at roughly 13X earnings out to 2020. If Mr. Trump puts through an infrastructure bill, this company is in a situation where they can take advantage of it. Through acquisitions they’ve upped their environmental capabilities as well as US exposure. You get a dividend growth of roughly 10% a year. Dividend yield of 1.43%. (Analysts' price target is $39.45.)

Likes the infrastructure aspect, and expects to see increased infrastructure on both sides of the border. Stabilizing commodity prices are going to help. They bought a global water platform, and thinks they will be able to cross sell. This has struggled for the last couple of years, and thinks it is starting to break out. He models 20% EPS growth over the next couple of years. Trades at about 18X versus its peers of 21X, versus its five-year average of around 21X. Dividend yield of 1.4%.