Couldn’t agree more with Stephen today on Market Call (Stephen been spot on this past year with his picks I must say). This is my favourite way to play the US infrastructure stimulus plan from Canada. All of that trading at 0.90x BV still. When you look at the other Canadian plays like STN and ARE trading at 2x and 1.2x BV respectively NPC is trading way too cheap.
The triple threat of macro tailwinds behind this company gives this a large runway now that the corporate structure and strategy has been rationalized.
1. Recovery in Commodity Prices-given their sector of expertise the company should see and improvement in spending of their end customers.
2. Regulatory Ease- Given that Obama and his band of Cronies over at the EPA have been replaced with a pro business the regulatory burden toward coal ad other power generation methods should improve and help spur investment.
3. USA Infrastructure Spending Program- the largest infrastructure spending plan that is multiples of what moved the CDN focused infrastructure names significantly on less. A spending plan that is the largest in over 50 years outside of recession should be a massive boost for NAPEC.
All that with an accelerating US GDP rate to 3-4% going forward is multiples of what you are going to get out of CDN or the rest of the developed world.
Cheap name that has the wind at their back and an entry point right here 20% off its 52 week high while in the mean time management has closed on a great acquisition of PCT Contracting I like it right here.
LONG LONG LONG