By: Larry MacDonald
Insiders are buying at infrastructure firms. That bit of news would seem to provide some confirmation for the bullish thesis in 7 reasons to invest in infrastructure.
The latest to draw insider buying is Aecon Group. In late November, three directors bought over half-a-million dollars worth of shares in a range from $5.75 to $7.50. The number of insiders and dollar amounts are fairly strong signals.
The company is holding up well so far during the global downturn. “At the end of October, the firm reported record-level quarterly earnings of $23.1 million, or 45 cents per share. It also reported, as of September 30th, a $1.5-billion work backlog,” noted INK Research.
Before Aecon Group, the infrastructure firm attracting insider buying was SNC-Lavalin Group, adds INK Research. Both, being Canadian-based multinational firms, should find it easier to sell to foreign markets following the 30% decline in the Canadian dollar against the U.S. dollar over the past year.
One Response to “ Insiders buying at infrastructure firms ”
This isn’t shocking. I’m optimistic that governments have learned from the Alberta experience – that borrowing money during a downturn to buy infrastructure is WAY cheaper than waiting to be flush with money during a labour crunch. So with any luck, we’ll see a rush into infrastructure spending during this recession.
By Neil on Dec 4, 2008