Hi there,
Seems to be a few folks asking about SCL lately and I'm not really a big fan. It hasn't done much in years and has been in a pretty steady downtrend since 2014. It doesn't even offer a dividend to justify holding the company through tough times.
While the company does look cheap, they are still operating in an environment of reduced spending in the oil & gas industry. The company recently announced a new CEO (promoted from within) so maybe he can steer the ship towards out performance. The company has already had a short term bounce of covid lows and still trading at a discount to pre-pandemic price of around 11 per share but once again, these are just short-term indicators. That chart since 2014 is one of the ugliest on the TSX Index.
Over this time, revenue has been on a steady downtrend and profitability has eroded. The only 'good news' is that its debt profile has remained stable.
Overall, I'd need to some something special out of the new CEO to jump into this stock even if it perhaps offered some short-term upside. If I'm going to buy, I like to be prepared to hold for the long-term and SCL is not one I'd be comfortable holding for a long-period of time. At least not at this point.
Mat