We see three encouraging signs at Aecon Group Inc. (Friday’s close $xx.xx) for contrarians. First, insiders bought around recent lows. Over the past 90 days, two directors acquired a total of 5,660 common shares at an average price of $17.97. That reinforces the idea that the stock has strong technical support around $17. Secondly, according to INK signals, Aecon has a potential short-squeeze setup as short-sellers are betting against a firm with relatively high insider commitment. Finally, Aecon has relatively attractive valuations such as a price to cash flow ratio of 6.2.
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Ted Dixon is CEO of INK Research which provides insider news and knowledge to investors. For more background on insider reporting in Canada, visit the FAQ section at www.inkresearch.com. Securities referenced in this profile may have already appeared in recent reports distributed to INK subscribers. INK staff may also hold a position in profiled securities.
Chart reflects public-market transactions of common shares or unit trusts by company officers and directors.
Ted Dixon