Investment Q&A

Q: Dear 5IR Team
I am thinking to add SNC to my industrial sector. I own CAE & TFII
Just sell WSP.
Your thoughts on Risks/rewards for long term ?
Thanks Regards

Q: Now that a settlement is reached, would you recommend buying SNC for growth ?

Q: Good Morning all;
With the rather positive quarter numbers released today, what is your opinion of this company going forward? Any catalysts that you see going forward? Thanks!

Q: With the Bloc doing so well in the election and the PM sure to lavish our taxes their way, what companies generate a lot of income from Quebec, and/or are candidates for charity ? Thanks.

Q: Good morning,
Can you please comment on the remaining assets of SNC (after its sale 10% of the 407) and would they represent( along with the general business of the company) a takeout opportunity for a competitor, perhaps at higher prices than the current market value,

Thank you,

Q: I "had" a full position in this company...since have lost 50% value from this companies various troubles. I have been holding for now as based on my other holdings (mostly buy and hold or index tracking) it doesn't seem to make sense to take a capital loss. What do you think of this company now--hold (as most of the trouble is priced in) or Sell?

Q: With SNC hitting lows not seen since 2005 are its fundamentals good enough to make it of interest. If so what time line would make sense?
Thanks

Q: Good morning,

Could you please offer your insights on SNC Lavalin, in light of this morming's announcements.

Thank you,
Brad

Q: Can you please comment on the following Companies with regards to how you see them performing over the next year and specific to SNC, would you cut losses or continue to hold and hope it turns around in the longer term (3-5 yrs).

Q: Interesting article in Tuesday's Globe about the SNC sale of Highway 407. Stephen Jarislowsky is against the sale, he thinks it should go to a shareholder vote and feels that the value of the 407 investment will double in 10 years. My question is how can an an investor like myself invest in the 407 and if the answer is no can you recommend a similar investment. Thank You.

Q: News yesterday BAM has $2B deal with China in real estate. Make people think the story in the dark room. Sources indicate the seller(s) on the other side of the deal are not private own Corp, is it the another political motive deal? Indirectly related with recent tensions with China?
Over the years, looking the rear view mirror, it looks like these corps are acting as liberal’s “friends”/banks/lobbyists, they are too big to fail and same time they are not for shareholders best interest.

Q: With SNC selling part of its 407 assets and buying flexibility in further (exterior) projects, the company might be undervalued and a good buy. What are your thoughts?
Thanks, as always!

Q: I watched the Neil Bruce interview yesterday and tend to agree somewhat that the company is something of a political pawn and that the continued negative news - more so than company fundamentals - are depressing the stock price. Do you agree? My main questions then are:

1. What happens to the stock price if some of the 407 stake is sold? Investors know it's coming so will this be non-material to prices when complete?

2. If what the CEO said is true and the company only has 1 federal contract at this time anyway is that angle not being massively overplayed as a driver of lower prices?

Q: Is it public knowledge who the majority shareholders are in snc?

Q: hello team, this stock is approaching 10 year low, keeping in mind current political storm, this company has no future? do you see value in the company?
Thanks for taking my question

Q: Good morning,

Curious as to your thoughts on SNC's news this morning. I bought earlier in the week and will be curious to see how the market reacts. Assuming you are listing to the earnings call, can you share your thoughts on the company following that? Specifically what, if anything, have we learned that my impact the company positively or negatively moving forward. I would also be curious to know what your thoughts are on the dividend cut (not why I bought it).

Q: Is it a good time to buy WSP. It seems to me that if SNC ends up being convicted, and then banned from Federal government contracts, that WSP (also HQ in Montreal) could be a big beneficiary with lots of new business. Why does the media only mention possible job losses for SNC, wouldn't WSP just hire many of those people anyway?

Q: With all the trouble at SNC and with talks (Quebec Premier) that if things do not change at the company, someone will make a takeover bid for it. Two questions. Do you think a takeover is possible? and secondly if possible, would WSP be a good fit?

Q: I like to buy stocks after they miss earnings or otherwise have a powerful move down based on news. Kinaxis and NFI were recent examples and both have bounced nicely. I considered SNC when it first fell at the end of January and did not. With today's news it is back at the low. Much of the analyst talk is about the risk of criminal charges and the ban on Canadian infrastructure contracts that would result. I am wondering if that (criminal) possibility was not a factor at $60 in July? Or how about at $48.65 on Jan 21? If this is a reaction to deferred payments on their Chile mine project I think it looks like a buy. If people are terrified about the possible charges it's a different story. How does 5i look at the significance of the 2 guidance downgrades vs the impact of the overhanging court proceedings? To me it looks like a buy if you think they will get a settlement.

Q: In the past, 5i has often made reference to a falling stock's "floor value" as a barometer to judge future risk/potential. In the case of SNC for the value investor, what would your estimate be as to how much of the 407 ETR asset is represented in the current stock price? I imagine this is one of Ontario's most attractive infrastructure assets. Are markets pricing in any stock value beyond the 407 asset?