Topic: How To Invest

Hi, Pat. What is your recommendation on Aecon Group? Thanks.

Article Excerpt

Aecon Group Inc., $13.50, symbol ARE on Toronto (Shares outstanding: 56.5 million; Market cap: $769.1 million; www.aecon.com), is one of Canada’s largest infrastructure developers. The company and its predecessors built Canadian landmarks like the CN Tower, the St. Lawrence Seaway, the Calgary Olympic Oval and the Halifax Shipyards. Aecon has three main divisions: • The energy group, which accounted for 39% of the company’s revenue in the latest quarter, builds facilities and components for clients in the power industry, including nuclear reactors. • The infrastructure group (37% of revenue) builds roads, bridges, tunnels and public transit projects. It also sells asphalt and aggregates (crushed stone and gravel), key ingredients for making concrete. • The mining group (24% of revenue) develops, builds and maintains mines and oil and gas properties. It also builds related infrastructure, like roads and waste-management systems, and helps clients restore their sites and plant new trees. In addition, Aecon develops, finances and operates public infrastructure projects, including the Highway 104 Cobequid Pass toll road in…