RE:RE:Interesting recognition by good'ol Cramer - play the video Dear alll, Please amend and resend.
What we trust :
1. Professional services has been growing adequately, properly caring and recruiting great resources. EBITDA 2021 was 817m (there was a settlement) and projected around 750m this year.
2. REM very well managed and delivering. Time extensions and additional costs due to unforeseen events such as the tunnel and the pandemic nicely negotiated by Aecon on our behalf, based on what appears to me as very well documented claims.
3. Trillium: My in-depth analysis concluded that the city of Ottawa is at fault acting in bad faith without the support of an independent engineering advisory firm and will lose in an adjudication, arbitration or court.
What we don't trust:
1. SG&A needs to be decentralized and go to as close as possible to zero. Yes zero is the target. The board failed imposing this requirement and the CEO failed to eagerly get there. I don't "trust" the genuine eagerness or commitment or possibly capabilities of either. I shared this with JFL and their answer is we changed the board and are watching.
2. Capital should be sold for 2 to 2,5b and a share buyback of up to 75,5m shares implemented to reduce the float to 100m shares. Both the board and management failed on this one and I don't trust either shareholder sensitive,
3. Construction claims on Eglinton and Trillium should be more aggressively pursued in accordance with contractual rights which should be leveraged so we don't have to finance unforeseen events. Claims should be very well documented and the adjudication process followed and then arbitration. Possibility to demobilize should be used. I don't trust management has any cojones on this.