
TSE:WSP
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.
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 the company. Has owned stock of it in the past. Overvalued now trading at 12 times EBITDA. Excellent Management team at execution. He would look at it if it comes back at 10 times EBITDA.