SNC-Lavalin Group Inc. (ATRL-T)

It is going through a turn around recently and de-leveraging the balance sheets. Nuclear energy reactors is a pretty exciting part of the business. He prefers WSP with its M&A activity and design component.

A lot of action's already happened on this stock. He bought on the breakout, and now there's consolidation. Chart's looking positive, likes the formation, though you may have to live through a bit more consolidation. Yield is 0.1%.

Strong performer over the year. Execution should continue. Got rid of legacy contracts. Strong in civil engineering and nuclear. Could see large growth from nuclear especially, if projects continue to be built.

Strength in stock price lately. Highly ranked in technical analysis. Owns shares in company, and would recommend buying. Sector out performing with increase in infrastructure spending. 

He's done 2 legs so far. That's how you should approach a stock, not all in all at once. In an uptrend, resistance coming up. Generally, you don't argue with an uptrend.

Currently in "up trend". Consolidating higher. Large swings good for investors. Will continue to own, and buy more. 

Well diversified geographically in Canada and beyond and in end markets. Strong balance sheet, but profits are below the market average. (Will change company name and ticker.)

It has done very well and is well poised for the next five years. It has changed its name and has a new ticker symbol.

Have they atoned for their bribery sins and reformed? It's a different company now, out of the energy business and run by different people. He needs to look at this closely. It nearly didn't survive its corporate misconduct.

Many companies in the nuclear space are either government entities or divisions of larger companies. But for E&P companies, SNC has significant industry experience and it has won several contracts in various countries this year. As an indirect play on the sector, it works, and it has a big backlog. It has not been our favourite company, for various growth reasons and scandals, but things have improved immensely and very strong earnings growth is now expected. It is not 'cheap' at 27X earnings but for a nuclear-focused investor we think it has some attractions. 
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Not a bad business, but bad news keeps turning up. Closed the valuation gap. Likes the engineering/construction space quite a bit. He favours WSP in his core portfolio. Valuation stretched, be cautious.

Not as much flexibility in contracts.

Does not own shares.
Very good job of getting out of turn key contracts that have been burdensome.
Expecting higher profits going forward.
Trading at discount to peers.

Must distinguish between construction companies (low margin, project risk) and consulting businesses. More of a construction company. Past scandals. Trying to pivot towards consulting. He prefers WSP and STN.

It is showing promise by getting rid of the legacy contracts with fixed prices and concentrating on the engineering side of the business. This will make it better for the long term.