WSP Global Inc. (WSP.TO)

He's playing infrastructure through WSP who are locking their debt to earnings, yet grow by acquiring. A conservative approach he likes.

This offers industrial exposure to international infrastructure. Rather than owning the asset (as Brookfield does), WSP builds it. She prefers WSP to SNC-Lavalin because its income is services related and it doesn’t have the cost-overrun risk that SNC has because of its fixed price bids. She would not buy WSP at this level because it has had a good run and is fully valued.

(A Top Pick July 28/17 - Up 36%.) Last quarter margins were up. They are still modeling 36% earnings growth. The name is getting a little pricey. He has lightened up a little bit. There are enough contracts around. There are enough governments that are spending.

(A Top Pick July 14, 2017. Up 35%). He sees ongoing opportunity for this infrastructure company, with new technology that can help in maintenance and expansion of roads and bridges.

This engineering service company has done well. It provides services to construction companies but does not share their risks of cost overruns on fixed-price construction contracts. However, it has risen too far and she would buy on a pullback.

(A Top Pick July 28/17 - Up 42%.). Still like the name but it is getting pricey. He has been trimming and selling calls on it. Good story.

You can play infrastructure through those who build it or through those that handle the engineering. He has not had a lot of exposure other than through Brookfield. He is watching Stantec closely on the engineering side, who is more focused on pure engineering. (Analysts’ price target is $67 )

(A Top Pick July 14/17 Up 16%). He sees this company growing by acquisitions and sees more opportunities to come. They still own it.

A top pick in the last shows. He has owned it for a long time. Solid balance sheet. 50% payout ratio that supports the dividend. The stock is not cheap. He wouldn’t be adding but holding or sell calls on it.

(A Top Pick Nov 23/17. Up 6%.) This company continues to execute. A great global player on infrastructure. Chart shows a very healthy up channel.

Has gone from being a pure Canadian company to a major global player through M&A. It does infrastructure such as buildings, transportation. Got hurt a little in 2015 during the selloff in crude oil, but since then they have moved away from energy and are now focused on infrastructure. Have a very strong position in the US and parts of Europe. Dividend yield of 2.6%. (Analysts’ price target is $62.00.)

(A Top Pick Oct 21/16. Up 41%.) Had felt this was a good play on the mobile rebound that was set to happen. He still models 12% EPS growth. The balance sheet is in good shape and the dividend is still safe. It has hit the level he had expected, so it is not cheap anymore. Trading at around 24X, which is in line with its five-year average.

He likes it. The earning are going to be good. Strategically, to buy these stocks that are up a bit, get a toehold and then add when it pulls back. You should have it but you don’t need to buy it all at once.

Sell SNC Lavalin (SNC-T) or WSP Global (WSP-T)? He would keep SNC.

(Market Call Minute.) All the Canadian construction companies and engineering companies are probably Buys. North America and the world needs infrastructure to be replaced.