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Member Avatar Bays (29.95) Submitted: 6/12/2009 4:33:36 PM : Outperform Start Price: $9.56 AEGXF Score: -87.92

It looks like Canada will be spending about $12 billion for infrastructure. This is a good chunk out of the total $40 billion stimulus package. Although $12 billion dollars looks like peanuts compared to our big brothers stimulus package, I think since there are far fewer companies, the investment opportunites are just as great.... or maybe even greater.

One company that I think will benefit the most from this is Aecon. (ARE.TO)

Aecon is one of few companies big enough to handle these large scale projects.

For anyone who lives in Canada, especially Ontario, you have seen Aecon everywhere.

"Aecon operates in four principal segments within the construction and infrastructure development
industry – Infrastructure, Buildings, Industrial and Concessions."

Their third quarter ending Sept30 saw another record performance. Operating profits were up 175% from last years third quarter.

Aecon’s backlog also continues to set records. At $1.5 billion, backlog at September 30
was $227 million higher than the record backlog reported at the same time in 2007.

Record levels of government spending on transportation infrastructure are expected to continue, with Ontario recently renewing its call for continued infrastructure investment.

Similarly, investment in new electrical generation capacity in Ontario is expected to remain strong as the government continues its drive to replace its aging generation capacity.

Capital spending on social infrastructure (from which Aecon has recently gained three new hospital contracts as well as contracts on a number of university buildings) continues to be strong.

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