Infrastructure boom One of the stocks in Lennox Capital's new...

Infrastructure boom

One of the stocks in Lennox Capital's new fund is engineering company RCR Tomlinson, which has morphed from a heavily resources-linked company to focus on the east coast infrastructure boom.

"The business has done an absolute about face, it is a credit to the MD Paul Dalgleish – he has refaced that business and now we all know about the infrastructure spend coming down the pipeline," Donohue says.

"The stock looks cheap ... and following on from that infrastructure spend is that the business has a good record of turning contracts into profit, which is also important." @longing

Good to see that people are now recognising that there is an east coast infrastructure boom underway (think the $10 bn Sydney Metro project that Aconex partner Bechtel is now driving, the $16 bn Westconnex project that CIMIC is heavily involved in, the new Snowy Mnts Hydro scheme that will probably feature in tonight's budget, likewise the inland freight rail from Brisbane to Melbourne and the new airport at Badgery's Creek, etc,etc.)

And who is either currently already involved in these projects, via their enterprise partners, - or very likely to be involved in the near future?

Aconex.

Lennox Capital, like others, need to understand that the $US 10 T global construction industry actually needs to go digital to improve its productivity and profitability. The same is true for the infrastructure and energy sectors. "Investment thesis had broken down", indeed. Digital adoption levels are still far too low.

Aconex is a truly global player, started by a couple of smart Australians, in a Victorian garage, 16 years ago. They are now at the cutting edge of a digital transformation that is underway globally. What's not to be proud of?

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This post is based on my own research and is not investment advice. When making investment decisions, always DYOR.