WSP Global Inc. (WSP.TO)

This is global infrastructure. He sees 11% EPS growth over the next couple of years. Trading a little bit cheaper than its five-year average, which is hard to find in this market right now. They have a very solid dividend of 3.58%. Low payout ratio. Very strong balance sheet. They like to grow by acquisition, which is very important. Currently making an acquisition in the UK which he likes.

They announced the acquisition of a UK company yesterday. They are big in public infrastructure. When they report their Q3 results there will be a currency impact on earnings, but he likes it and owns it and is buying it.

Caller had 15 year time horizon. Equities should provide the best rate of return over that time. Infrastructure building area is going to be a positive. It has a good dividend yield. You can’t predict management over 15 years, but management is doing all the right things right now.

Over the last few years, all the stimulus we have seen has been monetary stimulus. That is great for asset prices and is good for the 1% who happen to have assets. What we have not seen globally is “fiscal stimulus”. That is what often creates jobs. A hot topic right now is that globally; countries appear to be getting ready for fiscal stimulus after the US election. Thinks we are seeing an improvement in construction and engineering companies in a run up to the expectations that we are going to see more spending in this area. This company looks attractive.

He is not in this area right now. He used to own SNC-Lavalin (SNC-T), but sold it in the mid-$40. There is a lot of money flowing in infrastructure. The stocks are kind of pricey, which is why he is hesitant to recommend any of those shares right now. You have to be careful. These are cyclical businesses and if things don’t come to fruition, they are overpriced.

This is an engineering company with a global footprint. He likes the valuation. This plays into the theme of low interest rates and government spending. Thinks there is going to be a lot of government spending in the next 1-1.5 years, and this company will be bidding on a lot of contracts. Dividend yield of 3.47%.

This just had a very good quarter. Showed good organic growth. This is not that exposed to commodities and materials because it really is global.

He likes this. It has pulled back a little on some UK concerns. About 12%-14% of their business is UK. They had to walk away from a UK acquisition they were going to make, which was mildly accretive. He still sees it growing at 9% compounded annually over the next couple of years. Trading at 17X, so it is not cheap, but its 5-year average is around 22X. Very good balance sheet. Dividend yield of 3.8%.

In the very short run, this is not the best time to buy this. A pure play engineering company, growth by acquisition. Terrific management. Believes it has about 10%-20% exposure to the UK. If things play out on a macro standpoint the way he thinks they will, at some point infrastructure spend starts to kick in, and this would be one of the beneficiaries.

Has liked this ever since they did the Parsons Brinkerhoff acquisition, which really gave them a global base to do their construction projects from. They continue to make more acquisitions that are interesting. 3.8% dividend.

One of those companies that can benefit from financial engineering. They’ve pretty good organic growth. Thinks earnings per share grow at about 13% compounded over the next couple of years. Have also done very well by growing through acquisition. Just had a good Q1. Backlog was up quarter over quarter. Trading below its 5-year average.

(Market Call Minute) Buy SNC instead.

A well-managed, growth by acquisition story. Likes that the majority of their business is not in Canada. Not particularly cheap, but if you are a long-term investor it is probably a pretty good stock to own.

(A Top Pick Dec 18/15. Down 9.28%.) He has held this for about 18 months, which for him as a trader is a long time. Generally, the stock has been okay, but it is breaking down right now. Will probably be looking for an exit point pretty soon. Everything is so oversold right now that you don’t want to Sell into the madness. He is looking for a short-term rally in order to get out.

(A Top Pick Nov 26/14. Up 13.62%.) Still likes this. It benefits from FX tailwinds. A good chunk of their business is in the US and the UK. Backlogs are very strong. Their Canadian component is hurting them, but they mitigated that by making an acquisition that is much more Ontario focused. Still a Buy at levels like this.