Bird Construction Income Fund

BDT-T

Analysis and Opinions about BDT-T

Signal
Opinion
Expert
DON'T BUY
DON'T BUY
October 3, 2018

This is a tough business to be in as construction and design are low margin businesses. The last couple of quarters showed some operational hiccups. He needs to see these issues turn around before investing. He thinks there are other ways to play the infrastructure wave, such as Brookfield or SNC Lavalin.

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This is a tough business to be in as construction and design are low margin businesses. The last couple of quarters showed some operational hiccups. He needs to see these issues turn around before investing. He thinks there are other ways to play the infrastructure wave, such as Brookfield or SNC Lavalin.

COMMENT
COMMENT
December 21, 2017

He likes the company and management. Not sure of visibility at this point, but would feel comfortable with the overall structure and the way they have been able to operate. Dividend yield of 3.9%.

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He likes the company and management. Not sure of visibility at this point, but would feel comfortable with the overall structure and the way they have been able to operate. Dividend yield of 3.9%.

COMMENT
COMMENT
June 9, 2017

This has been a very good stock. They are situated mostly in the West. Through the last few years, this has done consistently well. At some point, this is going to have a turnaround. Thinks the worst is over for them. If you are a long-term buyer, and you want to be in this space, you are probably good to go.

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This has been a very good stock. They are situated mostly in the West. Through the last few years, this has done consistently well. At some point, this is going to have a turnaround. Thinks the worst is over for them. If you are a long-term buyer, and you want to be in this space, you are probably good to go.

COMMENT
COMMENT
May 26, 2017

A great, great performer for years and particularly strong in the oil sands with a concrete business. Particularly liked the old management, not to say that the newer management is not to be liked, but it doesn’t seem to have the same colour and performance. They had a dividend cut, which was probably very prudent.

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A great, great performer for years and particularly strong in the oil sands with a concrete business. Particularly liked the old management, not to say that the newer management is not to be liked, but it doesn’t seem to have the same colour and performance. They had a dividend cut, which was probably very prudent.

COMMENT
COMMENT
February 7, 2017

Just looked at this recently, and it was badly hit. With all the infrastructure planning, you would think that it would do well and hopefully come back. Has admired the company for a long time. They have an excellent track record. Dividend yield of 4.2%.

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Just looked at this recently, and it was badly hit. With all the infrastructure planning, you would think that it would do well and hopefully come back. Has admired the company for a long time. They have an excellent track record. Dividend yield of 4.2%.

COMMENT
COMMENT
February 1, 2017

Canada’s 3rd largest construction firm. The perception is that they have exposure to the energy sector, which is slowing down. There are lots of other things going on though. This is a stock that may be down unduly because of perception rather than reality. Feels the future is brighter for this company and it is the best value in construction stocks.

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Canada’s 3rd largest construction firm. The perception is that they have exposure to the energy sector, which is slowing down. There are lots of other things going on though. This is a stock that may be down unduly because of perception rather than reality. Feels the future is brighter for this company and it is the best value in construction stocks.

TOP PICK
TOP PICK
January 31, 2017

This has not performed very well. However, there is a tremendous amount of upside potential, particularly because the company was negatively impaired by the slowdown in Western Canada and lower commodity prices. As we hit an inflection point and see CapX budgets increase with a bit of an improvement in the Alberta economy, which should grow 2% this year coupled with federal infrastructure spending, we could see the backlog start to go up and people get more optimistic about margin growth. They recently cut the dividend, so it should be relatively safe. Has about $4.80 in cash per share on their balance sheet. Dividend yield of 4.36%. (Analysts’ price target is $10.)

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This has not performed very well. However, there is a tremendous amount of upside potential, particularly because the company was negatively impaired by the slowdown in Western Canada and lower commodity prices. As we hit an inflection point and see CapX budgets increase with a bit of an improvement in the Alberta economy, which should grow 2% this year coupled with federal infrastructure spending, we could see the backlog start to go up and people get more optimistic about margin growth. They recently cut the dividend, so it should be relatively safe. Has about $4.80 in cash per share on their balance sheet. Dividend yield of 4.36%. (Analysts’ price target is $10.)

PAST TOP PICK
PAST TOP PICK
November 3, 2016

(Top Pick Nov 25/15, Down 22.22%) It had improving price momentum at the time as well as being cheap and having a big backlog. They missed their Q2 and misses have really punished stocks recently. He got out. Their business slowed from where he thought it would be. It is still cheap and if you have the time to wait, it now scores in the top 20% in terms of valuation, 6 times price to cash flow. Expect it to stay in the penalty box until they can show some improved earnings.

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(Top Pick Nov 25/15, Down 22.22%) It had improving price momentum at the time as well as being cheap and having a big backlog. They missed their Q2 and misses have really punished stocks recently. He got out. Their business slowed from where he thought it would be. It is still cheap and if you have the time to wait, it now scores in the top 20% in terms of valuation, 6 times price to cash flow. Expect it to stay in the penalty box until they can show some improved earnings.

BUY
BUY
September 29, 2016

This is the one he would be looking closely at here. Their balance sheet is quite good. Risk reward looks pretty good. It is great for individuals, but it does not trade a lot so holds him back as an institutional investor.

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This is the one he would be looking closely at here. Their balance sheet is quite good. Risk reward looks pretty good. It is great for individuals, but it does not trade a lot so holds him back as an institutional investor.

SELL
SELL
September 23, 2016

Management has said 2017 will be a transition year for them. Part of the issue has been a declining backlog in business and declining commodity prices. Thinks the stock is going to be challenged over the next 6 months to a year. This is one that he would rather be Selling or avoiding for the next year. Payout ratio by the middle of next year should spike out at 132%, which is a bit of a worry. Also, are they going to have a dividend.

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Management has said 2017 will be a transition year for them. Part of the issue has been a declining backlog in business and declining commodity prices. Thinks the stock is going to be challenged over the next 6 months to a year. This is one that he would rather be Selling or avoiding for the next year. Payout ratio by the middle of next year should spike out at 132%, which is a bit of a worry. Also, are they going to have a dividend.

COMMENT
COMMENT
June 28, 2016

When you see what the government is planning on doing on infrastructure and building, this company could do well. A smartly run company. Thinks it has a fair bit of upside from here.

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When you see what the government is planning on doing on infrastructure and building, this company could do well. A smartly run company. Thinks it has a fair bit of upside from here.

BUY WEAKNESS
BUY WEAKNESS
May 17, 2016

Has owned this in the past. Just had some numbers out that were pretty good. Has a very healthy dividend, and their payout ratio is less than 100% which is nice. Expects they will continue to get a lot of work from infrastructure that is going to be upgraded over the next couple of years. Also, expects they will get some work on the Fort McMurray situation as well. If you could Buy on a pullback, that would be ideal.

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Has owned this in the past. Just had some numbers out that were pretty good. Has a very healthy dividend, and their payout ratio is less than 100% which is nice. Expects they will continue to get a lot of work from infrastructure that is going to be upgraded over the next couple of years. Also, expects they will get some work on the Fort McMurray situation as well. If you could Buy on a pullback, that would be ideal.

COMMENT
COMMENT
April 12, 2016

Would steer clear of construction/engineering firms. So much depends on 1) winning contracts and 2) completing the contracts at a profit. Historically, in order to win contracts, companies might bid a very finely calculated price, and then get surprises on completion that will hit their profit margins.

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Would steer clear of construction/engineering firms. So much depends on 1) winning contracts and 2) completing the contracts at a profit. Historically, in order to win contracts, companies might bid a very finely calculated price, and then get surprises on completion that will hit their profit margins.

BUY
BUY
March 21, 2016

Trudeau has done a good job of guiding the street about infrastructure spending increases. This company should get some of this money.

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Trudeau has done a good job of guiding the street about infrastructure spending increases. This company should get some of this money.

HOLD
HOLD
February 12, 2016

Has held in remarkably well given the manufacturing slowdown in Canada. One of his largest holdings in one of his funds. One of the 2 cheapest stocks in the universe that he covers. A really strong ROE at 23%. Trading at 4.5X Price to Free Cash Flow, so is really cheap. Dividend yield of 6.5%. Pristine balance sheet.

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Has held in remarkably well given the manufacturing slowdown in Canada. One of his largest holdings in one of his funds. One of the 2 cheapest stocks in the universe that he covers. A really strong ROE at 23%. Trading at 4.5X Price to Free Cash Flow, so is really cheap. Dividend yield of 6.5%. Pristine balance sheet.

BUY
BUY
February 5, 2016

(Market Call Minute.) This is engineering and there is going to be more money coming from the federal government into this area.

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(Market Call Minute.) This is engineering and there is going to be more money coming from the federal government into this area.

COMMENT
COMMENT
January 13, 2016

Attractive dividend yield of 6.5%. There are a number of infrastructure projects that are going to be happening, and this is probably going to be a beneficiary. With concerns about a slowing economy, and part of their business is in oil and gas construction, he thinks the market is concerned about that.

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Attractive dividend yield of 6.5%. There are a number of infrastructure projects that are going to be happening, and this is probably going to be a beneficiary. With concerns about a slowing economy, and part of their business is in oil and gas construction, he thinks the market is concerned about that.

TOP PICK
TOP PICK
November 25, 2015

Wants stocks that will benefit from a cyclical recovery, which he is expecting, but without breaking the bank while you wait. A general contractor. A diversified revenue mix. They are in industrial residential wastewater. Scores really well on value with very strong price momentum. Great ROE at 23%. Cheap on a free cash flow basis. Solid balance sheet with about 25% of their market cap in cash. Dividend yield of 5.43%.

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Wants stocks that will benefit from a cyclical recovery, which he is expecting, but without breaking the bank while you wait. A general contractor. A diversified revenue mix. They are in industrial residential wastewater. Scores really well on value with very strong price momentum. Great ROE at 23%. Cheap on a free cash flow basis. Solid balance sheet with about 25% of their market cap in cash. Dividend yield of 5.43%.

TOP PICK
TOP PICK
November 24, 2015

Has a below market multiple at about 15X. They have about $4 per share in cash. Analysts keep on increasing their estimates to catch up to what the company is actually doing. 5.5% dividend yield.

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Has a below market multiple at about 15X. They have about $4 per share in cash. Analysts keep on increasing their estimates to catch up to what the company is actually doing. 5.5% dividend yield.

HOLD
HOLD
October 30, 2015

This ought to be benefiting from this infrastructure motivation that appears to be firing up in our new young Canadian leader.

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This ought to be benefiting from this infrastructure motivation that appears to be firing up in our new young Canadian leader.

DON'T BUY
DON'T BUY
March 25, 2015

They have exposure directly to energy bit also to construction out west. He has been short the stock since the energy decline.

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They have exposure directly to energy bit also to construction out west. He has been short the stock since the energy decline.

COMMENT
COMMENT
October 15, 2014

This is a stock that has done well and pays a dividend. Getting beaten up a little bit in this market. If you are concerned about things slowing down out West, you want to factor this into your valuation. These construction firms can lose contracts fairly quickly. Pipelines and backlogs are not guaranteed revenues, and can disappear if oil prices get really weak.

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This is a stock that has done well and pays a dividend. Getting beaten up a little bit in this market. If you are concerned about things slowing down out West, you want to factor this into your valuation. These construction firms can lose contracts fairly quickly. Pipelines and backlogs are not guaranteed revenues, and can disappear if oil prices get really weak.

HOLD
HOLD
August 12, 2014

When he looks at the sector, one that he is contemplating adding to his portfolio is Aecon (ARE-T), which reported yesterday and the stock fell off. Feels the fundamentals are a little bit better. At this point in the cycle, you are really making a bet that there will be an increase in infrastructure spending, which he thinks we are on the verge of.

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When he looks at the sector, one that he is contemplating adding to his portfolio is Aecon (ARE-T), which reported yesterday and the stock fell off. Feels the fundamentals are a little bit better. At this point in the cycle, you are really making a bet that there will be an increase in infrastructure spending, which he thinks we are on the verge of.

HOLD
HOLD
August 11, 2014

Thinks there is M&A activity. He loves this whole sector. $12 is a good buy range. Thinks it could go a little bit higher toward the top of the channel. Loves the sector and the company.

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Thinks there is M&A activity. He loves this whole sector. $12 is a good buy range. Thinks it could go a little bit higher toward the top of the channel. Loves the sector and the company.

HOLD
HOLD
March 10, 2014

Extremely well managed and conservatively managed company. You never have to worry about their balance sheet. They are on the edge of a pretty big infrastructure spend in both Manitoba and Western Canada and will do well out of that. Has been looking at this again. Good potential. 5.4% dividend yield.

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Extremely well managed and conservatively managed company. You never have to worry about their balance sheet. They are on the edge of a pretty big infrastructure spend in both Manitoba and Western Canada and will do well out of that. Has been looking at this again. Good potential. 5.4% dividend yield.

COMMENT
COMMENT
November 11, 2013

Churchill Corp (CUQ-T) or Bird Construction (BDT-T)? Would have a hard time choosing between these. They have different components. This is a very, very well run company. They are probably the best in the sector in terms of extracting margins, consistency, dividends and shrewd acquirers.

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Churchill Corp (CUQ-T) or Bird Construction (BDT-T)? Would have a hard time choosing between these. They have different components. This is a very, very well run company. They are probably the best in the sector in terms of extracting margins, consistency, dividends and shrewd acquirers.

BUY
BUY
October 30, 2013

He likes the whole sector. Came out with some good earnings. The pipeline is being filled in with new jobs all the time. Great company.

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He likes the whole sector. Came out with some good earnings. The pipeline is being filled in with new jobs all the time. Great company.

DON'T BUY
DON'T BUY
January 16, 2012
Doesn't know the company extremely well, but doesn't like this sector. These companies have very inconsistent performances over time. Not a good long term “Buy and Hold” kind of company.
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Doesn't know the company extremely well, but doesn't like this sector. These companies have very inconsistent performances over time. Not a good long term “Buy and Hold” kind of company.
BUY
BUY
June 8, 2011
Very well run business and he is a bull on construction in Western Canada and Northeast Alberta. It is volatile when it sells off.
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Very well run business and he is a bull on construction in Western Canada and Northeast Alberta. It is volatile when it sells off.
STRONG BUY
STRONG BUY
April 18, 2011
Best known for their oil sands contract. They have just learned that they no longer have 150 million or so contracts in their backlog with the Alberta Museum but Alberta has delayed it go for a bigger project. Very big backlog.
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Best known for their oil sands contract. They have just learned that they no longer have 150 million or so contracts in their backlog with the Alberta Museum but Alberta has delayed it go for a bigger project. Very big backlog.
WAIT
WAIT
March 9, 2011
Has huge exposure to the infrastructure build-out. $35 is a good entry point. On a cash flow multiple it is pretty inviting. The US exposure has always been a cause for concern, but the concern about infrastructure stocks has been put behind them. Every time it drops he gets back into the name.
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Has huge exposure to the infrastructure build-out. $35 is a good entry point. On a cash flow multiple it is pretty inviting. The US exposure has always been a cause for concern, but the concern about infrastructure stocks has been put behind them. Every time it drops he gets back into the name.
DON'T BUY
DON'T BUY
June 17, 2010
Has been either side of $30 for the last 6-9 months. Exposure to a pretty cyclical industry but are a major player out West. Given the build out in infrastructure in Western Canada, they're well positioned but a lot of this is priced into the stock. Distribution is relatively safe but doesn't see much upside.
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Has been either side of $30 for the last 6-9 months. Exposure to a pretty cyclical industry but are a major player out West. Given the build out in infrastructure in Western Canada, they're well positioned but a lot of this is priced into the stock. Distribution is relatively safe but doesn't see much upside.
PAST TOP PICK
PAST TOP PICK
April 22, 2010
(A Top Pick March 24/09. Up 76.6%.) Still likes.
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(A Top Pick March 24/09. Up 76.6%.) Still likes.
PAST TOP PICK
PAST TOP PICK
March 8, 2010
(A Top Pick March 24/09. Up 64.4% excluding distributions.) Winning some very good contracts. Incredibly conservatively managed. Still a Buy.
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(A Top Pick March 24/09. Up 64.4% excluding distributions.) Winning some very good contracts. Incredibly conservatively managed. Still a Buy.
BUY WEAKNESS
BUY WEAKNESS
December 7, 2009
Looking at this and others because of infrastructure aspects. 5.4% yield. Would be interested at $30.
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Looking at this and others because of infrastructure aspects. 5.4% yield. Would be interested at $30.
BUY
BUY
November 11, 2009
Very strong, conservative balance sheet. Believes the stimulus is only now starting to translate into real contracts in Canada. Still room to grow. 5.25% yield is easily sustainable.
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Very strong, conservative balance sheet. Believes the stimulus is only now starting to translate into real contracts in Canada. Still room to grow. 5.25% yield is easily sustainable.
BUY WEAKNESS
BUY WEAKNESS
October 7, 2009
Likes infrastructure stocks, which are all doing fairly decently. This one is a good looking stock. Steepness of the rise looks a little unfounded and wouldn't be surprised to see it coming down to the $33 level, which would be a good time to pick it up.
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Likes infrastructure stocks, which are all doing fairly decently. This one is a good looking stock. Steepness of the rise looks a little unfounded and wouldn't be surprised to see it coming down to the $33 level, which would be a good time to pick it up.
PAST TOP PICK
PAST TOP PICK
September 21, 2009
(A Top Pick June 29/09. Up 22%.) Great infrastructure story that is going to continue to grow. Generated 114% ROE last year. Incredibly cheap. Great management. 6% yield. When they convert they will continue as a dividend paying Corp. with effectively the same yield.
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(A Top Pick June 29/09. Up 22%.) Great infrastructure story that is going to continue to grow. Generated 114% ROE last year. Incredibly cheap. Great management. 6% yield. When they convert they will continue as a dividend paying Corp. with effectively the same yield.
BUY
BUY
July 20, 2009
Very conservative balance sheet and they like to have a lot of cash. Well positioned for the eventual impact of the Canadian stimulus. Solid company.
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Very conservative balance sheet and they like to have a lot of cash. Well positioned for the eventual impact of the Canadian stimulus. Solid company.
TOP PICK
TOP PICK
June 29, 2009
Diversification across Canada. Great operational performance and good profitability metric over time. 7.5% yield is expected to be maintained through conversion in 2011. Payout ratio is around 35%. Phenomenal balance sheet.
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Diversification across Canada. Great operational performance and good profitability metric over time. 7.5% yield is expected to be maintained through conversion in 2011. Payout ratio is around 35%. Phenomenal balance sheet.