The wise investor | Jarislowsky reduces exposure to SNC-Lavalin

Every Sunday, we shine the spotlight on elements of financial and stock market news that may be useful to investors, but which might have gone under the radar




One of SNC-Lavalin’s largest shareholders has just significantly reduced its exposure to the Montreal engineering firm.

The sale of blocks of shares of SNC-Lavalin (which we must get used to calling AtkinsRéalis) throughout the month of September by Jarislowsky Fraser dragged the participation of the Montreal institutional investor below the 10% mark.

Jarislowsky indicates in a document filed with the stock exchange authorities that he started the month of October with a 9.85% stake in SNC-Lavalin, which means that the asset manager is no longer required to declare its transactions on the stock, unless its stake goes back above the 10% threshold.

A first analyst this week launched official coverage of the activities of the ADF Group, a Terrebonne company specializing in steel superstructures. Atrium’s Nicholas Cortellucci suggests buying, noting that ADF is entering a multi-year growth phase thanks to significant tailwinds from infrastructure spending and non-residential construction. He also points out that ADF added a robotic manufacturing line to its Terrebonne factory in the last two years, which has significantly increased margins. He adds that the company has significantly improved its balance sheet over the past year and that the valuation multiple remains lower than that of comparable companies even though ADF’s stock is up around 170% over the last 12 months.

An auction process for spectrum licenses in the 3800 MHz band will begin Tuesday in the country. The hundreds of millions expected to be spent by telecommunications companies will be closely watched by investors. The rise in interest rates over the past year is an element which should, however, ensure a minimum of discipline among auction participants. It will be particularly interesting to see how much ECB will pay out while the company’s ability to maintain its dividend growth has been fueling conversations for a while.

THE Colabor Group remains under the radar as its stock continues its recovery on the stock market. Only one analyst officially covers the activities of the Saint-Bruno supplier today. He recommends the purchase. Its target is $2, which represents an appreciation of 70% over a 12-month horizon.

Portfolio manager Daniel Ouellet, of the Ouellet Bolduc Group affiliated with Desjardins Wealth Management, reveals in his quarterly financial letter published Friday that he invested at the beginning of October almost all of the excess liquidity accumulated during the third quarter in three new positions on the Canadian market: ECB, Telus And TC Energy.

Down approximately 35% since its peak reached during the summer, the stock ofAir Canada maintains majority support on Bay Street. Twelve of the 14 analysts who officially follow the activities of the Montreal air carrier still recommend buying the stock. Their 12-month average target is $30, the equivalent of an appreciation of more than 75% from the current price.

The Chief Technology Officer at BRP has just made a gross gain of more than $220,000 by selling shares of the Valcourt recreational vehicle manufacturer. On October 11, Thomas Uhr exercised 2,550 options at a strike price of $20.33 and then sold these securities at a unit price of $107.21.

Quebec titles of Colabor Group, Stella-Jones, ADF Group, Coveo, H2O Innovation And OpSens hit a 52-week high this week on the Toronto Stock Exchange.

On the other hand, those of the National Bank, Savaria, Saputo, Pages Yellows, Boralex, Innergex, Bank Laurentian, Air Canada, MTY Group, Cogeco Communications, Band VAT And Transcontinental slipped this week to a 52-week low.


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