Investment Q&A

Q: I have roughly 5% exposure to infrastructure, exclusively through WSP. I am comfortable with my position (my entry point is quite favourable), and do not wish to trim it. I have been making a concerted effort to consolidate the number of positions in my portfolio (aiming for roughly 30-40 in total) as I feel it makes it easier to make decisions on what to include, as well as when to enter and exit a position. My question is whether I should increase my exposure to this sector, either through STN or SNC, or if I should focus on improving exposure to other sectors. If I were to increase my exposure to infrastructure, I would only pick one position. Any comments would be greatly appreciated. Thank you very much.

Q: Given with large infrastructure spending this year and next, would snc or aecon have the best opportunity for new contracts.

Q: According to TD the P/E on SNC is 4.1, WSP is at 22 and STN at 19.1, what do you think of SNC at this time?

Q: Interested in SNC in spite of their legal shenanagins. Looks as tho the Iran business bonanza is starting and SNC knows the Middle East well. We didn't like Iran with our previous cons govt. but I guess with the new one now we do. Also they are a Quebec company which bodes good for those infrastructure projects we keep hearing about. How do they stack up against ARE, WSP etc??

Q: Can you comment on SNC's latest results? Is it still worth holding? I'm down 10% after today's earning miss. I originally bought this stock as a short term trade as it was pretty range bound.

Thanks!

Q: Could I have your view on SNC please for growth and income.. Is this a good time to buy? Thanks

Q: Any thoughts on SNC Lavalin. Looks cheap after this sell off, but of course big question is the long term impact of these fraud and bribery charges. Good long term buy here or not worth the risk?

Q: Can you comment on SNC. I bought it as a value/trading play when they went through their crises at $36 but it seems like this is getting into a very pricey valuation! Where do you see this one going and would you recommend for a long term hold?

Q: SNC-Lavalin is acquiring Kentz to increase and become a major playing the in Oil/Gas engineering and construction business.

I know this is still fresh off the press, but what do you think about this acquisition and what is the medium-term outlook for SNC?

Q: Need your detailed analysis with this one. Looking at the latest quarterly earnings from SNC-Lavalin, most of their net income comes from what they call their ICI or Infrastructure Concessions Investments which consist of the recently sold Altalink and 407ETR (to name two.)

The former management took a strategy to diversify SNC income precisely to ensure a more predictable income quarter to quarter rather than the more risky and fickle revenue that comes from the Engineering and Construction side of the business. So, while they have a new strategy and now 3 billion more dollars, my concern is that their dividend from quarter to quarter is in jeopardy.

It's safe to say that the SNC-Lavalin of 2012 is not the same company as SNC of today anymore, so how secure and safe is it's dividend with this massive change in strategy?

Q: Warren Buffett bought SU in mid 2013 resulting in hugh increase for this sort of dormant stock in terms of price,& creating lots of increase fr.USA in our energy sector,which is the darling sector now. He now bought Altalink fr. SNC for $3.2b. Please advise how we are going to benefit fr. his move today,& provide some name of stocks. Thanks a lot

Q: Can you gaze into your crystal ball and guess what SNC Lavelin might buy with their excess money from Buffett deal.Thanks

Q: Hi,

What is your take on SNC and the recent announcement of the transaction with BRK?

Q: Hi Peter,
Is SNC Lavalin a buy now that the "scandals" appear to be behind them?
Great site, I have renewed for two years.
Peter

Q: Hello,

What is your opinion on SNC these days? Is it worth buying?

Q: Hi, What are your thoughts on SNC? I'm up 10% on it in my RRSP. There seems to be support at $40. Is it worth selling and waiting for a pull back? It represents about 3% of my portfolio although it is not a core holding. 75% of my RRSP is in your model portfolio. I also currently have a 3% Shawcore position. Thanks

Q: Question on SNC Lavalin (SNC). Their earnings are supposed to jump next year to $2.79. However, from there, their earnings are supposed to fall to $2.23 by 2017.

CIBC issued a report on SNC on Sept 4 where they value their operating business at $19 a share, their infrastructure concession investments at $28 a share, and their net cash at $3 a share.

Is it possible to reconcile both ideas? Is it possible to think SNC earnings per share will fall to $2.23 by 2017 but also think the sum of their parts is worth $50 today?

Q: May I have your opinion of SNC? I recently read a couple of articles that recommended buying the stock. One suggested in might be a take over target due to its low P/E relative to its peers.

Thanks

Q: Let's revisit SNC-Lavalin Group Inc. again. Symbol SNC.

I know you guys are fond of Stantec in this space, but looking at SNC by itself, what you guys think about the new CEO's direction to look into selling some of their ICI (Infrastructure Concessions Investments)? I thought this was the part of the company that generated a decent and stable cash flow; why would they sell it? Your thoughts on this please.

Q: Do you think SNC Lavalin is a short? Do you think SNC can generate enough legitimate earnings to make up for the loss of their "other" earnings? According to the news the World Bank has cut them off for 10 years. The CBC national news was promoting an soon upcoming documentary on SNC paying bribes to Bangledeshi public servants in order to score a new bridge funded by the World Bank. Thanks (I have never shorted a stock and don't expect to now but I am curious none-the-less).