RE:RE:RE:Top pick dividend stock on BNN Bloomberg today You ask when to sell. The answer to this is same as the one you would apply to any asset with a decent growth prospect including revenue growth as a result of inflation.
About growth of Aecon: Aecon is in a field with a strong growth proposect considering : 1) the decaying infrastructure in NA, 2) the need to shift out of fossil fuels and build sustainable energy production capability and 3) the need to build transit systems all over NA to reduce total transport cost to society defined in transportation economics as the total sum to governments and users..
About the financial strength of our clients : Most of our clients in the three (3) aforementionned fields are governments and they are rich as a high level official of Aecon portrayed it to me.
About the first business field: Decaying infrastructure is costly. Think of a pothole. What is the cost of a pothole to specify. If you hit 100 potholes with your car, you may end up with say a 200$ bill if you add your time. If you are rich enough to own a German car, you may fetch 2,000$ easy. At 200$ only, every pothole cost 2$ to every user. An average daily traffic of 10,000 vehicles per day would result in a cost of 20,000$ per pothole per day to us all the users. Over a year you have a cost of over 7m per pothole. If the traffic is only 1,000 vehicles per day, you have a loss to society of 700,000$ per pothole per year. It is a catastrophe. A pothole can also cause accidents. A severe injury cost 30 times the annual GDP in economic terms. The same applies to every other utility. There is a huge waste to every level of government in NA resulting from the dire condition of our infrastructure. The huge investments are kicking in and Aecon will reap the benefits.
About the energy transition: The investments in energy transition are huge. Hydro Quebec has just announced a 170B program for the next 10 years. Figure 600B for Canada and 6 trillions for the US.
About transit investments : The capital projects in Ontario total about 100B in ten years, Figure 300 billions for Canada, 3 trillions for the US.
So selling now is like selling a house in Vancouver or Toronto at the beginning of the large immigration inflow. The later the better in my opinion.