copied from zcl board - thnx carswellRaymond James Report Uncovers Key Investment Opportunities in Canada's Infrastructure and Construction Boom
TORONTO, Dec. 13 /CNW/ - Investment Dealer Raymond James today released
an extensive report which identifies key investment opportunities growing from
an unprecedented infrastructure and construction boom currently underway in
Canada.
Entitled, Nation Building: How To Invest in Canada's Infrastructure and
Construction Boom, the 116-page report provides a detailed analysis of data
together with insightful anecdotal evidence that supports the premise that the
tremendous gap that exists in infrastructure investment must be closed by both
provincial and federal governments.
"We have witnessed many examples of infrastructure shortfalls that have
affected several markets across the country," says Frederic Bastien, Raymond
James Analyst. "We've seen crumbling bridges in Quebec, power outages in
Ontario, and enormous highway and light rail transit expansions in Alberta and
British Columbia. And this is just a start."
Despite additional investments and concrete steps now being taken at all
levels of government, the report quotes respected industry sources that claim
that Canada's total infrastructure investment gap is now pegged at roughly
$125 billion.
"Our analysis points to a huge backlog of activity right across the
country," says Ben Cherniavsky, co-author of the report and a senior Raymond
James analyst. "The tragic bridge collapse in Minnesota last year was a
wake-up call that further delaying re-investment into needed infrastructure
repairs can have deadly consequences. It proved to be a catalyst for
governments across Canada and the U.S. to evaluate their existing state of,
and increase investments in roads, bridges, dams and other necessary
infrastructure repairs and enhancements."
The report details five segments in the construction market which are
spurring on the current boom: Transportation, Buildings, Power and Utilities,
Water and Mining - in seven separate regions of the country: British Columbia,
Alberta, the Prairies, Ontario, Quebec, the Atlantic provinces and the North.
According to the analysis, there are six key forces causing the current
infrastructure and construction boom in Canada. First, there is a general
recognition of the urgency to repair or upgrade the nation's roads, schools,
bridges, airports etc; governments (both federal and provincial) are in good
financial shape to afford these investments; governments have more effective
ways to finance infrastructure projects; strengthening Canada's infrastructure
is good for international trade flows and opportunities related to increased
globalization; environmental concerns are causing governments to invest in
`green infrastructure' such as wind power, water purification, and light train
transit. Finally, the enormous activity in the oil sands and mining is having
a profound impact on the country's infrastructure and construction markets.
With these factors in mind, the report identifies 17 companies in the
Canadian public markets that Raymond James analysts believe are poised to
benefit materially from these trends. They include:
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- Aecon Group
- Bird Construction Income Fund
- Canam Group - Churchill Corp.
- Finning International
- Genivar Income Fund
- GLV Inc.
- IBI Income Fund
- Lockerbie & Hole
- McCoy Corporation
- North American Energy Partners
- Ritchie Bros.
- SNC-Lavalin
- Stantec Inc.
- Toromont Industries
- Wajax Income Fund
- ZCL Composites