thoughts on SNC – post gas/oil selling

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Hello gentlemen,

Correct me if I’m wrong, but by reselling its oil/gas business, SNC-Lavalin made it more or less directly known that it would focus on its core business, which is construction + engineering + project management/procurement.

Do you see this announcement as good news in the long term for the company? From my understanding, the fundamentals are quitestrong, and it is a solid undervalued company that has now the chance to bounce back from the controversies it faced in the last few years. I would like to have your kind opinion on this theory.

Thanks!

Yacine

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Asked on February 16, 2021 8:39 am
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Hey there!

This is one that, despite being likely undervalued, is undervalued for a reason.

The scandals and controversies the company was involved in make me not want to put my money anywhere near it, and I'm very sure I am not the only investor who has these thoughts.

In my opinion, plenty of strong companies in the sector like current Bull List stock Aecon and former Bull List stock (which we added as a direct result of the SNC scandal) WSP Global who haven't been involved in this kind of stuff.

This sort of stuff can have long standing effects on the company's reputation.

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Posted by Dan Kent
Answered on February 16, 2021 10:28 am
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