Aecon Group Inc (ARE.TO)

(Market Call Minute) 33% is infrastructure spending and they will benefit, but it will take a while.

Investors are rethinking this one. A significant portion is energy, but maintenance and regular contracting is significant. New building is only half of their energy exposure. Their nuclear projects are very sophisticated and higher margin. Buy today and over the next year or two their margins will slip up a bit.

They have a 47% energy exposure but they really beat on their infrastructure. This is a name he has been buying aggressively. He likes it. You can still buy it at these levels.

(Top Pick Feb 24/15, Up 21.49%) It pulled back because oil pulled back. They had this big monetization with a project in Mexico. He believes in companies with strong back logs.

Just had a fantastic quarter, which sets up a nice trend for the remainder of the year. One thing that is really positive is that all of their infrastructure stuff is kicking on all cylinders. He is looking for a target at one of the old highs at about $17. Good risk/reward.

He is very familiar with this stock, originally recommended it and owned it until the moving average was broken and the trend line broken in 2014. After that, the stock developed a major downtrend line. Stock is still below this major downtrend line. It is below its 200 day moving average. However, he is impressed that is already has a double bottom, so it has the potential to have a “W” formation. Recommends that you hang onto this stock. If it falls below $10, you should get out.

(Market Call Minute.) Engineering/construction companies are interesting and are a relatively good place to get some exposure. Prefers SNC Lavalin (SNC-T) which is cheaper and a little more international in the US.

Construction in general, particularly commercial, is going to be a thing for some time to come in Canada, but is really going to be ramping up in the US, and that is where you should be looking, where the real growth is going to be.

Engineering/construction company. Benefiting from infrastructure built projects in North America. It grows through acquisition. There is nothing wrong with this company. Energy is one of their end markets, but it is not as large as some of the others.

Disappointing earnings. People thought as it grew it would have made a lot more money.

(Top Pick Feb 14/15, Down 16.32%) There were perceptions about declining infrastructure spending. They sold an airport in Ecuador. They have won a number of contracts. It is a construction business with infrastructure tied to it. There was fear they would be impacted by the oil sector.

Pretty good risk/reward. In a really good place long-term. Sold off a part of their equity of an airport in Ecuador, so now they are a really pure play. Increased their balance sheet. All in all a pretty good story.

He owns their convertible debt. Prefers SNC Lavalin (SNC-T). This is energy exposed and lumpier than SNC Lavalin (SNC-T) or WSP Global (WSP-T) because it is smaller. Averaging down on this at around this price would be fine. He can see it at $16-$17 a year from now.

He likes this company. Not too long ago he was buying it close to $10. They have a fairly sizable operation in the Alberta area, and a good deal of that is energy related. As a result, he thinks that is why it has pulled back as much as it has. Over the next few years, with the infrastructure building that is going to occur, this is certainly going to be a participant. Try to buy close to $12-$12.50.

(A Top Pick Feb 13/15. Up 12.58%.) This one benefits from February all the way through to June. Spring is construction season and construction spending increases every year from March through to August.