Third Quarter 2011 Conference CallStantec popped on my radar not long ago because the price has dropped to a level where it's trading at around only 10x earnings. I have to wonder what's coming up at the Q3 call on November 3.
This is a solid company and has been a top pick or past top pick of just about every analyst who's been on BNN for the last three years.
Most of them have said that around $28.00 was a reasonable entry point. At $23.00, I just bought a bunch because I can't see this company doing anything but going back up from here. It's a billion dollar company with solid numbers across the board including an ROE of 16.4% and a Debt/Equity Ratio of only .50.
They have a long track record of adding value through acquisitions, which they've continued to do through this downturn, but I have to wonder how long it's going to be before they begin to issue a dividend. Could that be on the agenda for this call? Michael Simpson said on Market Call last December that he expected they would start issuing a dividend in the next 24 months.
They've stuck with their guidance of organic growth of 2-3% over last year.
Anyone have any other thoughts?