Lyle Stein WSP Global Inc. WSP-T BUY Oct 03, 2016

Really solid earnings the other day. Targets are way higher than what the street expected. Great numbers in growth and free cashflow. Sector is immune from tariffs. 24x PE for 2026, growing at 15%. Don't be a hero, wait to get it at a lower level.

Services aren't goods, so they won't be subject to border tariffs. Plus, engineering services have secular growth opportunities from things like climate change and data centres. Impressive recent results. 

Trading sideways. Fundamentals score 10/10. Upside of ~19%. Not a huge dividend.

A Canadian company exporting services around the world. Are not that effected by the tariffs directly. Shares are down because they work with companies where steel costs are rising, so these projects will be more expensive and compress their margins. If there is infrastructure spending around the world, WSP will definitely benefit. The 5-year chart is exceptional, fairly directionally up. He owns Stantec instead (more US and water exposure), but both companies are worth owning.

Attractive name. Global. Pure design, before projects are even built. Valuation's come down dramatically, around 27x PE. Not dirt cheap, but fair price for a very well run company. Highly acquisitive. Backed by 2 largest pension plans in Quebec, so lots of firepower.

High-quality company in a high-quality part of the value chain. Valuation is the only sticking point. Expect them to buy more of their competitors and integrate them well. Good core, long-term holding. Pick your spots.

Likes the sector, which is growing. Strategic acquisitions at good prices. Just bought a company in Europe to expand presence there. 

His choice in the space. About 23% compounded annual shareholder return over last decade. Bigger than peers, more global, in better verticals. Into water and environmental remediation -- things with faster growth curve. Serial acquirer.

Sector should have some growth with planned infrastructure spending. In the space, he prefers larger companies like this one in terms of safety, especially as we don't know which way the economy's going to go in the next couple of years. Large companies also have a global footprint, so US tariffs are not as much a concern.

Doesn't know why it's down 3.6% today. WSP is extremely well managed, therefore commands a premium valuation.