Aecon Group Inc T.ARE

Aecon great news

[Henrye]

Perfect 2 points! Music to our ears! Gabriel do you think Aecon will cosnsider raising dividends " slightly " to send a message of confidence for 2024 and beyond!
Just had lunch with colleagues and the consensus was that now is the last opportunity to invest in Aecon shares to avoid chasing the shares later as bulls start to wake!!!!

[Gabriel]

Very interesting point you raise.  My suggestion to many key stakeholders of Aecon made a few weeks ago is to buy-back shares instead. I think shareholders would benefit more if the company uses its cash to reduce the number of shares at this ridiculous price. Aecon is a formidable money making machine and its stock as you write will pass the 20$, pass Go and head to 50$ per my shared

[Gabriel]

I forgot to mention that Aecon did implement an NCIB of up to 10% of its shares just before COVID when its stock price was close to 20$. They bought back about 400,000 shares and Covid hit.

[Gabriel]

EBITDA of 400m is very realistic for 2025.  Remember EBITDA last Q was 121.3m. If the shares count is reduced to 40m, you have: 1. An Entreprise value or 6 x 400m = 2.4 B 2. Assuming net debt as high as 400m (1x EBITDA), you have a market cap of 2B 3. 2 B / 40m shares = 50$

[Henrye]

Re " Share buyback "  Gabriel , I am embarrassed that I did not think of this " brilliant angle "  Your logic makes all the sense in the world for Aecon management to do a significant share buyback at current hugely cheap, severely discounted share price! And " voila " Aecon management would instantly instill all the confidence required by investing in

[Gabriel]

The IIROC report on short activities on the TSX as of January 15, 2024 shows that close to 30% (29.965%) of all Aecon traded shares in the first half of January were short sales totalling 18,154,617 CAD. Source; https://www.iiroc.ca/sites/default/files/epubs/SSALE/20240101-20240115_ShortSaleTradingSummaryReport.csv?1705406728 There was however short covering activities whereby short

[Alexcanada]

Thanks Gabriel for the reports.   The lowest I paid for ARE shares was 8.49$ when the stock was under attack a few months ago after results. Silly shorties or most probably, purposeful activity in order to grab shares on the cheap from retail. I'm buying as well on any signs of relative weakness.  

[JayBanks]

  It should be noted that a 8-10% dividend increase could be made while implementing your buyback plan and only cost the company nominally more throughout the year. As the share count reduces so does the costs of distributions per quarter. It would be the best of both world catching interest from investors who like both methods, opening greater share price appreciation potential.

[Henrye]

Doing both simultaneously can be achievable and a "dynamite" to thrust the stock where it clearly belongs !  love Gabriel's buy back option but if possible, combine with 8/10% dividend increase as well!  likewise , while we are discussing this exciting topic, there is no doubt that there are others globally eying potential acquisition of Aecon in whole or in part as

[Gabriel]

Clearly the saving in dividends as a result of the reduced share count can also be redistributed to the shareholders. SNC Lavalin made a big mistake not buying back their stock when it was trading below 20$ despite communications with the board, and the two prime shareholders. The reason was to keep the assets as a shield against their losses in mining, oil and gas and LSTKs. Now the share price

[Gabriel]

Regarding acquisitions. We need to acquire talent, whether directly or by acquiring companies with talent. We need multiple efficient teams in every specialty to execute with stringent estimates, reliable work plans, consultation, clear and complete contracts, excellent and simple communication platforms with follow up, proper attribution of responsibility, accountability and consultation, very

[Henrye]

Gabriel, your 2 posts are very refreshing and logical beyond wild !!!!  Your communication as always is flawless & effortless!  All followers should have tons of food for thought and digest numerous takeaways!!  The future at Aecon is bright and needs to continue to attract talent and assign 2 or more top guys to absolutely ensure that every one at all positions performs