Bird Construction (BDT.TO)

[zylon]

Revenues from Q1 2011 were down from a year ago.

The price drop on Friday (June 3) looks like an opportunity to me; of course it could go lower. The day's volume of 76.5k although slightly above average, does not hint of a wash out.

At Friday's close of $11.24 the monthly dividend (0.055) yields 5.8%

Revenues were $171 million, down from $181 million.

The company said construction revenues declined due to lower construction activity in the Alberta oilsands. It said it also saw lower gross profit margins due to high competition.

Bird Construction converted from an income trust to a corporation in January, which made it subject to different tax rules.
Winnipeg Free Press

Bird's home page

Charts: daily / weekly

Disclosure: I own shares in BDT with average cost just under $12

[al42]

I have had this on my watch list foe a while now. Almost pulled the trigger yesterday @ $11.50 but didn't. When it got below 11.5 I was hoping for 11.00 but never got there. maybe Monday?

Is your average cost of below $12.00,before the 3 for 1 split?

[zylon]

Is your average cost of below $12.00,before the 3 for 1 split?

I wish it was before the split

No, I bought around $36 before the split, and added some yesterday to bring my average down.

These one day hits are becoming more common in many stocks and recoveries don't happen quickly if at all. To me, that's an indicator of more weakness to come this summer. However, it being the 3rd year of the US election cycle, I would be surprised to see the year end lower in US & Cdn indices. I'm buying small amounts of Cdn dividend stocks and precious metals miners.

[al42]

[QUOTE=zylon;67958]I wish it was before the split

No, I bought around $36 before the split, and added some yesterday to bring my average down.

Ah, too bad it would have been a nice profit if you had. But looking back it looks like it only got to the low $14 dollar range back in 08 - 09.

I think it should be OK though, Oil should stay above the 70 - 75 dollar range for the foreseeable future. This would be important for Bird as allot of their business is coming from the oil sands and most of the projects will go ahead with strong oil prices.

[daddybigbucks]

Does Bird have a drip program?

Ive been wanting to get into Bird for a while as well, ill check the financials tonite to see if there are any warning flags.

took a look over the finanicials and they look ok. Im suprised how much cash they have outstanding.

They can pretty much pay off all they debt with their cash.

I think it is a great long term hold at 5%. I might try to take a position as well this week.

[al42]

[QUOTE=daddybigbucks;68201]Does Bird have a drip program?

I don't think so ... I wasn't able to find anything that suggested that they did.

[humble_pie]

i don't know bird at all but i'm presently a fan of heavy infrastructure engineering. I was lucky enough to buy SNC in the high 37 range soon after the scandal broke. Loosely, i follow snc, genivar & jacobs engineering of the US.

barwelle u have expert knowledge in this sector, i believe ? i certainly appreciate hearing your views ...

[Barwelle]

We're not really a competitor to Bird, and not in all the same sectors - mostly just light industrial. Small company. Our subtrades have been warning us to book now because they are filling up fast. We could do fine ourselves with what we have on the table already for this year, and we are pricing out more work, and hiring... should be a year for growth.

They are a fairly big company, seem to have a good name in the industry (at least, I haven't heard horrible things about them like I have with others), and they seem to be well diversified.

Labour shortages will be a problem in Alberta, of course, if things really get going. And one of their competitors got a leg-up last year... The owners of the well-regarded Clark Builders sold 51% to Turner Construction, a huge American company. As I understand, the main advantage for Clark is that they can now finance much larger projects... compete more with the likes of PCL, Bird, Kiewit...

This is my novice opinion (I haven't done research and don't have insider info)... they might have some issues filling in the gaps and rearranging the work they have (because it sounds like it was a big contract), and they have competition, but there is work to go around in Alberta so I don't think it'll affect them in the long term. Just from looking at the chart, I want to buy some at around $13, similar to you SNC move, buy on the bad news... Should probably actually do some research though.

What do you think?

[riseofamillionaire]

Anyone have any details on how big the contract is? Nothing mentioned in the press release.

I own with around a $12 average price. They have the best balance sheet among peers, good backlog of projects, in a hot part of the country and growth through acquistions. Also own SNC on a turnaround play around 37 which has done well lately. I'm attracted to contracting and engineering because i can easily understand what they do. SNC, BDT with good balance sheets, lots of cash and great dividends, whats not to like. (besides the cyclical nature of the businesses)

[Barwelle]

Nope. Might (?) have something to do with Suncor's Voyageur upgrader though. But most of their work on that job should be complete already.

See May 10 press release here.

Bird has been awarded a contract for the Early Works Civil Program at the Voyageur Upgrader Project located north of Fort McMurray, Alberta. Work on the project includes earthworks, concrete foundations and underground piping. The Voyageur Upgrader Project is operated by Suncor Energy and jointly owned by Suncor and Total E&P Canada Ltd. The Early Works Civil Program is expected to start in May 2012 and be completed by spring of 2013.

And news here and here.

The oil sands major plans to build the multi-billion dollar upgrader along with Total E&P Canada Ltd, but the two parties have cut spending on the plant until they can decide on the project by the first quarter of 2013.