This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.
"Like the U.S., Canada is looking to big infrastructure plans," says Roger Conrad. In The Canadian Edge, he looks to Bird Construction Income Fund (OTC: BIRDF) as his top pick for 2009.
The Canadian income stock specialist explains, "The U.S. isn't the only country about to pour billions into infrastructure; Canada is also making a big move. And Bird Construction will be a prime beneficiary of this infrastructure spending.
"Bird has been a dominant player in building design and construction services for more than 85 years. Today, the company literally has its hands in every province, supporting projects for everything from oil sands mining to school construction.
"Third quarter 2008 revenue surged 31.5%, pushing nine-month growth to 48.3% as earnings per share more than doubled from 2007 levels.
"Meanwhile, order backlog -- the best predictor of future growth -- rose to better than $1.2 billion (Canadian), up from $821 million a year ago and $969 million at the beginning of 2008.
"That's about as clear a signal as you can get that Bird's still finding plenty of orders even in a weak environment like this one. And the company's $120 million net cash hoard is a powerful weapon for winning still more contracts.
"Featured current projects include a 4.69 million liter concrete dam and reservoir system and giant water treatment station in Manitoba, a massive expansion to an oil sands facility owned by the Syncrude venture of Super Oils and an enormous range of projects for commercial, residential and institutional customers.
"The company is a pioneer in 'sustainable' design, with seven featured projects now underway, including water treatment, a flex-space student housing facility on the campus of the University of British Columbia, and a revolutionary new sports complex to be used in the 2010 Vancouver Olympics.
"Bird shares haven't gotten much credit from investors over the past few months for business exploits. Despite an almost universally bullish consensus on Bay Street, the shares have fallen sharply and now yield around 10%.
"The payout ratio has sunk to just 22%, providing plenty of protection from today's turmoil as well as 2011 taxation. Bird Construction Income Fund is a buy all the way up to 20 (US dollars).
"We note that in addition to the pink sheet in the U.S., the stock trades on the Toronto stock exchange under the symbol BDT-UN."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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