Aecon Group Inc T.ARE

Two comments

[Gabriel]

Thank you Meesha for your comments.

1. On 3Q conference call: I found many comments from the CFO/CEO that we have turned the corner on the LSTKs. Key shareholders knew that Metrolinx CEO promised, in an open public statement, to compensate justified claims after the works are complete. The company is full with cash and will be more so as it completes these projets and is compensated. I have been involved as key infrastructure expert with two 9-figure claims on comparable projects and settlements are very substantial when clear and properly documented. I have absolutely no concern whatsoever here. And I making it known in the investment community. 

2. On markets: The Dow Jones has increased from 25,400 to 32,400 in the last 5 years, yet this barely covers for inflation per the link below. This said, Grantham has had quite poor returns over the better part of the last decade, barely covering his fees, surely not inflation, and surprisingly happens to be quite invested in tech stocks now in his new flagship ETF QLTY which holds Tesla, Alphabet, Meta,.. Yes I agree with you that there is big recession ahead, yet central banks will, in my humble opinion, have to accept a higher inflation rate - closer to 3 to 3.5% - if they want to keep our economies rolling to service their debt, pay for the rehabilitation the existing crumbling infrastructure and pay for climate change sustainable infrastructure. It is higher inflation (3 to 3.5%) or either of higher taxes, austerity or sovereign debt defaults (TAD). Higher inflation in my opinion is likely to be the lesser evil. This means everything will go up in price and as a corollary, cash is bad. It also implies that central banks will ease rates to avoid the aforementioned TAD scenarios.

https://data.bls.gov/cgi-bin/cpicalc.pl?cost1=25413&year1=201809&year2=202309

https://www.bnnbloomberg.ca/jeremy-grantham-s-gmo-files-for-first-etf-to-track-quality-stocks-1.1961763.amp.html