# WSP Global (WSP.TO)



## james4beach (Nov 15, 2012)

WSP is a Quebec-based engineering consulting firm with projects in roads, transportation, and civil engineering. It's Genivar rebranded:

Genivar rebranding as WSP Global in bid to distance firm from Quebec corruption scandal

The stock performance looks great in recent years, 5 year performance of 22.7% annually. Financial results look strong, though they've had a ton of acquisitions. I get a bit suspicious of so many acquisitions because they can be used for accounting tricks, and also can be detrimental to corporate culture and cohesiveness.

The history of Quebec engineering scandals (SNC, Genivar, and others) also makes me nervous about investing in any of these.
WSP ordered to pay $4 million fine for bid-rigging on Quebec contracts

Curious if anyone holds it. It's on my radar, but I have no position.


----------



## PabloPenguino (Dec 10, 2019)

It's on my radar too but I haven't pulled the trigger yet. Came up on my growth screener and I also noticed the growth by acquisition. Margins seem to be holding so no significant red flags yet. Management's outlook appears positive. I will continue to watch and may initiate a small position once it pulls back a bit.


----------



## Ponderling (Mar 1, 2013)

I own, but then again I work for then again, hey, I work for them. Came on as a part of of an acquired MMM Group a few years ago now. 
Not as much as I used to. I took a good pot in at $42 that was locked up for a year as a treasury share issue, and sold out at $67, to diversify.

In hind sight I should have held on, particularly when some of the proceeds ultimately caught a falling knife buying SNC shares on the way down that will take a few more years to recover.

A bunch of the stock is owned by cpp and qpp. 
Corp looks for similar co's with beat up short term share price and good long term prospects. 
Knocks on cpp/qpp says 'more treasury shares', and bingo, pensions pony up cash to buy up said beleaguered new add on.

Globe and Mail says this week maybe merging with some remnant of AECOM. 
That would be a bigger than normal acquisition. So share price might be a while till it sinks. 

Price is trending up as more co's and their revenue stream falls under wsp's umbrella. 

Yes, cohesive is a challenge.


----------



## james4beach (Nov 15, 2012)

I own some of this, and boy is it performing lately. I still have my hesitations though. It's currently 1.5% of my Canadian equity portfolio.

After all, it's Genivar and those Quebec corruption scandals never seem to end.


----------



## cliffsecord (Jan 10, 2020)

I've bought a few times. First time was $20!!! Coincidentally, also at around 1.5% of my entire portfolio. I think they are different than SNC because they don't do the construction as they just do the design. Once they bought WSP, they became a consolidator of engineering consulting firms.

Now these are the same guys who couldn't build a foot bridge in Ottawa. City launches $4.6M lawsuit over Airport Parkway bridge

NOTE: I'm now big into consolidators like BYD, CSU, BAM, BIP and IFC


----------



## james4beach (Nov 15, 2012)

It's on fire! Now up 87% over the last year.

Still a small one for me, 1.6% of my Canadian equity portfolio


----------



## Ponderling (Mar 1, 2013)

Recent rise in last 6 months is likely related to the buying up and current success at folding in Golders. Now about 64,000 global employees, with about 10,000 in Canada so a lot bigger than when it was just Genivar mostly in the land of PQ


----------



## plasmasnake (Apr 17, 2014)

james4beach said:


> It's on fire! Now up 87% over the last year.
> 
> Still a small one for me, 1.6% of my Canadian equity portfolio


I've been considering diversifying into the engineering/consulting sector (I don't own anything currently in this sector) and was looking into SNC, STN, WSP, and ARE (in no particular order). WSP has the most consistent track record among this group, but I'm not so sure about initiating a position at this price level. Would you mind sharing your thoughts?


----------



## james4beach (Nov 15, 2012)

plasmasnake said:


> I've been considering diversifying into the engineering/consulting sector (I don't own anything currently in this sector) and was looking into SNC, STN, WSP, and ARE (in no particular order). WSP has the most consistent track record among this group, but I'm not so sure about initiating a position at this price level. Would you mind sharing your thoughts?


Oh I don't really know. I have considered all of these that you listed, except for SNC.

Once I am interested in a stock, I usually take the leap and just buy it at whatever price it's at. Then I wait a year or two and re-evaluate to see what I think of it. I have often bought things that were over priced, that continued to be overpriced and produced good returns.

I really don't know. Portfolio management is tricky stuff. I have my own methodology but it may not work for anyone else. The main thing is, I buy stocks that I'm interested in, and then monitor them on an annual basis. Sometimes I ditch them after a year, other times I've kept them many years (like CP, MRU, WCN, FSV, DSG, CSU and then the giants ENB, RY, CNR, BCE, FTS)


----------

