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Aecon Group Inc T.ARE

Alternate Symbol(s):  AEGXF

Aecon Group Inc. is a Canada-based construction and infrastructure development company. The Company delivers integrated solutions to private and public sector clients throughout Canada and other countries. It operates through two segments within the infrastructure development industry: Construction and Concessions. Its Construction segment includes all aspects of the construction of both public and private infrastructure, primarily in Canada, and internationally and focuses primarily on the civil infrastructure, urban transportation solutions, nuclear power infrastructure, utility infrastructure and industrial infrastructure. Its Concessions segment include the development, financing, build and operation of construction projects primarily by way of public-private partnership contract structures, as well as integrating the services of all project participants. The Company’s projects include Annacis Water Supply Tunnel, Bell Canada Gigabit Fiber Service, Finch West LRT, and others.


TSX:ARE - Post by User

Post by Ronbromleygrosson Aug 26, 2024 3:30pm
164 Views
Post# 36196535

New all time highs almost daily now…….

New all time highs almost daily now…….

I keep placing buy "limit price orders"  almost daily now.  Some get filled but others don't.  I have been dead on to the penny on a few of my buy orders with "limit prices"  filled over the last few weeks now.  The others don't reach my conservative limit price targets.  

On the one hand I know I bought this stock much later than most members of this forum who have been here much earlier than myself. Your avg prices are lower than mine I'm sure.  The advantage to myself is I bypassed the problem years holding this stock (unlike SNC) and I bought my initial stake here after the most recent ER where the stock dropped from around $17.40 to around $14.50 or so.  I did start reviewing this stock about 1 year ago where it really hit the bottom at $8.40.  Stupid me could have and should have gone full tilt and loaded up there.  I had my large buy order limit price set at $8.00.  Missed it my the smallest of margins. I think about that every day now.  "Everyday bloody day"

That's me and my very conservative accounting trained self.  

Being in the construction industry 27 years,  I just thought the worst was maybe not over yet as I understand the nature of contracts types and differences between the various LS (Lump Sum) /GMP(Guaranteed Maximum Price/ CP (Cost Plus) P3 (Public Private Partnership) world and how contracts are signed and what each member (owner, contractor, subcontractor, consultant, supplier, financer, etc) is responsible for can be very complex and can maybe destroy companies and put them out of business if they sign contracts they cannot deliver.  


The general contractors are seeing it differently today where owners are delegating more responsibility to general contractors.  General contractors are delegating  that same risk to sub trades in their subcontracts to the trades.  If the trades go belly up, whose responsible then?  General Contractors don't want or need the BS of risk taking contracts.  Owners and governments know and understand the BS that has taken place for many years now. ENOUGH!!! 


Insurance companies like to collect their project insurance premium costs at the start of every project in full.  It's standard in the construction industry.  However when you have to submit a claim for a Builders Risk, Wrap up liability, E&O (professional errors and omissions claim) , flood claim, etc, be prepared to wait several years for that resolution to take place.  Hence the reason why the contracting companies always hate this bit of elevated risk and why many investors don't invest here until they see the last of the ""LSTK  projects" 100 percent free of risks.  

Hence why SNC before and now ARE are going through these same and identical "prove yourself phases".  

I have read through all the great posts here over the last few months.  Thank you everyone.  Your awesome.

Like I said up top.  I invested here late and am trying to catch up but doing it "intelligently and smart and prudently".  I am not chasing a price up for fear of being on the wrong trade.   That's how I got into problems early in life by being stupid and negligent without doing proper DD.  My investing journey has been much better over the last 10 years when I started being intelligent, patient and researching an investment idea about 5 to 10 times over before not only making my first purchase but all subsequent purchases thereafter.   My success rate is much better lately  

Sorry for the long text everyone.  It's a vacation day for me and I was just giving my opinion here but also looking for comments or opinions from these very good forum too.  Yes I like Aecon very much here not only from the posts here but also from my own independent research.  

The only thing that is really on my mind here is that Aecon imo is going to be acquired by eoy 2025 once the remaining risk of LSTK is officially off the books.  My guess is the smart money already knows this now.  Aecon has a "bullseye takeover"on its back if I ever saw one.  We are sitting ducks everyone.  Sad but true.  Load up when you have the chance.  Get the maximum you can if this holds true.  If no takeover, you still ride the wave of a very undervalued Aecon with huge tailwinds.  It's a win win.  

Thanks
Ron

 

 

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