Earnings season continues to reveal a split in investor sentiment, with optimism in infrastructure and energy tempered by caution in broader markets.
BNN Bloomberg spoke with Rebecca Teltscher, portfolio manager at Newhaven Asset Management, who shared her outlook on Aecon’s recent rally, Berkshire Hathaway’s record cash position and Canadian Natural Resources’ steady performance.
Key Takeaways
- Aecon’s shares jumped after news of a U.S. small modular reactor project, though fundamentals may not yet support the run-up.
- Berkshire Hathaway’s record US$381.6-billion cash pile signals caution about high market valuations.
- Canadian Natural Resources continues to deliver strong dividends and cash flow despite weaker oil prices.
- Teltscher called CNQ a “favourite” for its premium assets and shareholder returns.
- She warned that U.S. chip stocks remain overvalued, leaving the sector vulnerable to a correction.
Read the full transcript below:
ANDREW: We’re heading into another busy earnings week. Last week, Toronto-based Aecon, the engineering company, reported its highest-ever quarterly revenue, a record project backlog and a foray into U.S. nuclear projects. Let’s get more from Rebecca Teltscher, portfolio manager at Newhaven Asset Management. Rebecca, great to see you and thanks very much for joining us.
REBECCA: Thanks for having me.
ANDREW: Do you think ARE is a buy right now?
REBECCA: Yes, that’s interesting. It was my top pick the last time I was on Market Call, but I think the stock was about $7 cheaper than it is now. It’s definitely had a run. You can see that just in the past week alone, with several announcements about new nuclear deals, particularly in the U.S., that have caused the stock to move higher.
The interesting thing is, if you’ve followed the name as long as we have, nothing they announced is really new or concrete. They’ve been doing everything they said they would—working on nuclear projects in Canada. They’ve got their hands on every major nuclear project, whether refurbishments or the deal to build Canada’s first small modular reactor (SMR) at Darlington.
Now they’ve announced a partnership in the U.S. to build one of the first SMRs in Washington State, and the stock was up 12 per cent on that announcement. There’s nothing really concrete there yet—no financial details, no numbers, no timeline. Presumably, it’s going to be sometime past 2030. But the stock ran with the idea that this marks Aecon’s first entry into the United States, exporting its nuclear expertise from Canada. Investors are really happy about it.
We like the name over the long term, though I think it’s gotten a bit carried away. The stock came off about four per cent on Friday after a really strong week. I understand why some analysts have downgraded it in the short term. But over the long term, we’re still happy to own it. I think there are exciting things ahead for Aecon as part of this nuclear renaissance and the growing need for electricity and power.
ANDREW: Yes, it’s interesting. There were a couple of downgrades of Aecon last week, as you know, after that stratospheric run. But it’s such an interesting name. What about Berkshire Hathaway — a massive cash pile, not far short of US$400 billion right now?
REBECCA: Yes, you talked about it before the break — that massive cash pile is higher than it’s ever been. Again, in the quarter they were a net seller of stocks, not a buyer.
Similar to us, Berkshire buys names for the long term, and the companies they own are high-quality. There’s nothing wrong with those businesses — the issue is valuation. If they’re selling more stock than they’re buying, that’s probably a sign they think many of their holdings are overvalued.
We feel the same about a lot of our positions. We haven’t been adding much to our new names, but we also haven’t been selling — we’re happy to collect the dividend. It’s just been difficult to deploy new cash, which is also why Berkshire is sitting on so much of it.
The other interesting thing — and probably why the stock is down — is that they haven’t been buying back shares. Companies tend to repurchase shares when they think their stock is undervalued. I think Berkshire is signalling that markets, in general, are expensive right now. So they’re not buying back shares in a market that’s hitting all-time highs amid a weakening economy. I understand that decision.
ANDREW: We’re awaiting Canadian Natural Resources’ numbers this week. The yield on the stock is 5.2 per cent, and it’s still up even though it’s been a miserable year for oil prices.
REBECCA: That’s the beauty of a company like Canadian Natural Resources. Their decline rate is low, their reserves are high, and they remain profitable even in a weaker oil price environment. It’s a testament to how premium their assets are and how strong their management team is.
They’re in the news today because they just completed a well-announced asset swap with Shell. Now they own 100 per cent of the Athabasca Oil Sands Project mines, and as a result, their production and guidance have both ticked up slightly.
Regardless of short-term conditions, this is our absolute favourite name in the oil space. You’re getting paid more than five per cent to wait, and this is a company that consistently gives back to shareholders through buybacks and dividend increases. It has a stellar track record, a strong management team and premium assets. What’s not to like about CNQ?
ANDREW: Rebecca, thank you very much indeed. Really appreciate it.
REBECCA: Thank you so much.
ANDREW: That’s Rebecca Teltscher, portfolio manager at Newhaven Asset Management.
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This BNN Bloomberg summary and transcript of the Nov. 3, 2025 interview with Rebecca Teltscher are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
