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Opinions Andy Nasr
Bird Construction Income FundBDT.TOTOP PICKJan 31, 2017
Andy NasrStock price when the opinion was issued
As of Jun 19, 2026. Market Open.
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BDT is a $450.6M company with a strong dividend yield of 5.1%, and has been paying down debts recently. Sales growth has been decent, its profit margins are somewhat thin, but it has a nice cash balance of $115.8M, and generates decent cash flows. Its valuation is at a good level, with a forward sales multiple of 0.2X and a forward P/E of 7.6X. Analyst expectations are for decent sales and earnings growth in the coming years. We would be comfortable with a position here, given its low valuation and good yield, although we might not expect much in the way of capital appreciation.
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Premium contentPremium contentHe tends to shy away from the construction industry. It's volatile, very low margins, risk of cost overruns. Consulting is more lucrative and steady, as with WSP. Trade it if you want.
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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.
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.
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.
Michael Smedley
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.)