Q: ATRL hit a new high yesterday because they somewhat exceeded expectations and growth is forecast. Have your thoughts on ATRL changed? Certainly the company still has some legacy problem projects / debts but they seem to be resolving them. There appears to be growth, relating to CANDU nuclear reactor refurbishment inside Canada and new reactors in located in Romania. Romania is a member of the European Union but there is governance instability with the leading candidate being described as anti EU, anti NATO, Moscow (& Trump) friendly etc.
I have owned WSP for over 10 years now so I am well ahead but my weighting is still reasonable so I'm not looking to sell. I also have my doubts about ATRL but it is undeniable that the stock has positive momentum now so it is of interest to me to broaden out my construction engineering basket. ATRL is doing better but it is going to require continued strength in CANDU nuclear work to stay successful. I don't think the government of Canada will pull the plug on ATRL, the engineering talent is already inside ATRL but Romania maybe is a wild card.
Any thoughts you have would be appreciated.
I have owned WSP for over 10 years now so I am well ahead but my weighting is still reasonable so I'm not looking to sell. I also have my doubts about ATRL but it is undeniable that the stock has positive momentum now so it is of interest to me to broaden out my construction engineering basket. ATRL is doing better but it is going to require continued strength in CANDU nuclear work to stay successful. I don't think the government of Canada will pull the plug on ATRL, the engineering talent is already inside ATRL but Romania maybe is a wild card.
Any thoughts you have would be appreciated.
5i Research Answer:
The quarter was certainly solid and investors responded. Legacy issues are fading, and the backlog is providing lots of visibility going forward. Earnings growth looks really good over the next two years. Stock momentum of course has improved and it very positive. We are warming up to the story, certainly. It is not cheap at 30X earnings, but neither is WSP. STN is a bit cheaper. But ATRL has lots of solid qualities for a stock: rising earnings, earnings surprises, positive momentum and analyst upgrades.