Aecon Group Inc (ARE.TO)

Likes this one. Looking at upcoming trends in the marketplace, you have to look at infrastructure. Federal government has kicked in $14 billion for infrastructure, provinces have kicked in billions as well, and all we have to do is drive around and see how our infrastructure is just falling apart. Has a little bit of issue with the backlog, which is not as strong as he would like to see. (See Top Picks.)

A great company. There has been some issue with the Ecuador airport. They are going to sell it. Backlog has been improving. Just announced a big project in BC.

This was a hot group and then you had the correction and now they are starting to go again. We are now seeing build out in the private sector. Get a half position and then build out around it.

Is expensive. The stock is extended from a historical point of view. It will really have to break out if it is going to go much higher than this. He would be selling at this point.

(A Top Pick Nov 29/12. Up 46.41%.) There is a lot more infrastructure going on right now. This is involved in the oil business as well. Thinks there is a lot more on this. Just came out with a five-year 5.5% convertible debenture with conversion at $20. Still a good Buy.

At the upper end of their operating margins right now. For these companies, that he looks at as pure cyclical plays, you play the 2^nd derivative in terms of where they’re at in the margin cycle. Probably have a bit more. Have done very well but it has been against a lot of government stimulus, such as highways and infrastructure. Not a place he would want to put money. You would be better Selling than Buying.

(Market Call Minute.) Bumped up to a level where he had sold his stocks not that long ago. (Has just bought a convertible debenture on it.)

This will be one of those companies that benefits from infrastructure increases but they are also tied in some portion to the metals/mining industry (earthmoving). Metal and mining is going to be somewhat muted at least for the next year or so. He doesn’t see a great deal of upside on this right now. Would prefer the Brookfield Infrastructure Partners (BIP.UN-T).

(A Top Pick Nov 29/12. Up 39.45%.) Still believes it is going a lot higher. Could have been his Top Pick today. Likes the oil infrastructure area and this company is getting into that now. Building infrastructure for small pipelines to join up with larger pipelines. Came out with some really good earnings last quarter. Great guidance going forward. Cash flow has been bang on. There are more and more jobs coming into the pipeline.

Has undergone a tremendous transformation over the last couple of years. Have been winning more contracts. The problem is that the price has moved up quite a bit to reflect this. Yield is around 2%. Expect we have seen most of the capital accumulation that we will be seeing, at least in the interim. Prefers Churchill Corp (CUQ-T).

(Market call Minute) There is good growth in the business. The sector is doing well.

Infrastructure and capital expenditure play. Has just reached a new 12 month high. It is likely that the underlying trends are going to continue a bit further.

Had a remarkable turnaround over the last couple of years. As a construction company, as opposed to an engineering company, there will be more volatility. Has done very well but he thinks this could continue. Seem to be lining up new contracts. Last quarter their book to bill ratio was over 1 and continues to be positive.

This needs some exciting news to break out past the $14 level. In the meantime, it looks okay but just be cautious as it is approaching its old level of resistance. 2.5% dividend yield.

Engineering/construction. Has been looking at this one lately. Have really reinvented themselves over the last 4-5 years. He currently owns Stantec (STN-T) which he feels is now getting to be fully valued.