Aecon (Construction) updated Nov 2, 2021

The report on Aecon Group Ltd is updated but rated only Weak Buy / Hold at $17.98. (The stock is a bit lower at $17.62 as I post this comment)

Aecon is an admirable company in that it constructs many of the most significant projects in Canada including major bridges and highway work, refurbishment of nuclear power plants, construction of gas, electric and telecommunication networks and construction of major oil and gas pipelines among other things. A newer initiative is that it is operating the Bermuda International Airport (which it redeveloped) for the next 30 years. Its two largest peers are PCL construction and Ellis Don which are both private non-traded companies.

Unfortunately, this is a tough business and profits have been no more than adequate as opposed to very attractive especially given the risks. I am comfortable holding a modest position. 

 

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