Author Topic: SNC - SNC-Lavalin Group  (Read 14394 times)

longlake95

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Re: SNC - SNC-Lavalin Group
« Reply #30 on: August 27, 2019, 06:33:58 AM »
Hi Brian,

Great post. Thanks for your analysis. As Card mentioned there is an SNC thread, maybe you could repost there and continue to check-in once and a while. Im a new owner of SNC (August) and agree this company has a lot of hair on it - but there is value there, perhaps significant value. The political cloud hanging over SNC is a benefit to long term buyers buying now. I think in 3 years nobody in Ottawa or the general public remembers the SNC issues.

longlake
« Last Edit: August 27, 2019, 06:57:06 AM by longlake95 »


absolutbrian

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Re: SNC - SNC-Lavalin Group
« Reply #31 on: August 27, 2019, 11:23:54 AM »
Longlake95 and Cardboard,
Thank you for the replies.

I didn't see the previous SNC thread. I even searched for it. Link?


absolutbrian

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Re: SNC - SNC-Lavalin Group
« Reply #33 on: August 28, 2019, 11:15:06 AM »
SNC won a "major" engineering contract. Contract amount is not disclosed but the contract sounds significant. This is part of SNC's strategy to increase their service division. This is a multi-year contract reimbursable contract, the future of SNC. This also displays Atkins' competences. The market doesn't care. Stock down anyway to $15.80.

SNC-Lavalin appointed on major PMO contract on Australia's largest rail programme
https://web.tmxmoney.com/article.php?newsid=8236459111169865&qm_symbol=SNC


Spekulatius

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Re: SNC - SNC-Lavalin Group
« Reply #35 on: August 28, 2019, 03:04:20 PM »
Fixed price contracts for large construction projects are a disaster for the industry, just look at FLR.
To be a realist, one has to believe in miracles.

Cardboard

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Re: SNC - SNC-Lavalin Group
« Reply #36 on: August 30, 2019, 02:22:25 PM »
I am back in with a smallish position. I was waiting for a bottom and think that we have it now along with lots of value to support.

Reacted positively to good news today or contract extension while equity market was down.

Cardboard

absolutbrian

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Re: SNC - SNC-Lavalin Group
« Reply #37 on: September 06, 2019, 09:18:17 AM »
We should expect an update and a "plan" from the new CEO this fall. Hopefully it would clarify a lot of uncertainties and give investors a sense of direction. When he got the job in June he said he would take 60 days to meet with key shareholders.
 
I hope we get clarity on:
* How much debt has been paid back? How much leverage is left?
* What's the story with the share buybacks? Sounds attractive at these prices but is there money enough money for that?
* Can we get a the picture of what's going with the Infrastructure & Construction segment? This has been a major source of problems/losses. And how much of it in that's left in the backlog can be "de-risk"?
* An update on the Resource segment. Can anything be sold?

As for their legal issues, I don't expect anything new. The elections are in October, so their file is a definite "don't-touch". They are expected to face trial an anything can happen.

Cardboard

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Re: SNC - SNC-Lavalin Group
« Reply #38 on: September 10, 2019, 11:28:22 AM »
Train leaving the station?

CIBC resumed coverage today with an outperform-speculative rating and target dropped from $49 to $25. Seems to be the only explanation for the pop other than a decently good looking bottom on the chart.

Cardboard

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Re: SNC - SNC-Lavalin Group
« Reply #39 on: September 11, 2019, 05:54:21 AM »
Can't find an english article on this but, Jarislowsky after telling people that this would be about worthless with a sale of 407 (wanted a shareholder vote) has now bought back over 10% of SNC shares: scare the little guy then scoop shares at bargain prices in August...

Likely helps to explain the increase of yesterday as word got out on the Street.

https://www.lapresse.ca/affaires/201909/10/01-5240687-jarislowsky-revient-en-force-dans-le-titre-de-snc-lavalin.php

With 47% now held by 3 large institutions with deep pockets and all looking bad since they bought at much higher prices except for Jarislowski latest average down. 2 making noise: Caisse and Jarislowski. I am thinking that a privatization may not be far behind. It would be the best way for these guys to restructure the whole thing and make a really good return.

Cardboard