Q: Aecon Group up over 12% on Friday. Is this a company that you like? Would you stay invested or take profit and move on. If so, is there a company in the space that you like better for the long term.
Thanks
Dave.
Thanks
Dave.
5i Research Answer:
ARE's joint venture with several other companies announced it was in final negotiations on the build out of the first four of 12 small modular reactors. This was good news, but also puts the company in the spotlight of the very hot nuclear/energy sector right now. Still, the stock is only up 4% for the year. ARE had a takeover bid for it in 2018 (at $20.37/share) but the deal was blocked by the Canadian government. It is fairly small, and not our favourite in the sector. We would prefer WSP and would be fine with a swtich.