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Category Archives: SNC
SNC-Lavalin Group 10-Year Targets
Below are the valuation targets for SNC-Lavalin Group (SNC.TO) for the next 10 years. Continue reading
Posted in 10-year Targets, Altimeter, SNC
Quick Take: SNC-Lavalin Crashes
Subscriber S.D. asks:
“Any update on target price is with today’s earning warning?”
Our Quick Take:
On January 28, 2019, SNC-Lavalin (SNC.TO) crashed as much as –28%.
The reason for the decline was describe by SNC as “…Inter-governmental relations between Canada and Saudi Arabia, together with unpredictable commodity prices and uncertain client investment plans, have led to deterioration in our near-term prospects which we cannot ignore…(Tomesco, Frederic, “SNC Cuts Forecast as ‘Serious Problem’ Emerges in Mine Unit”. Bloomberg News. January 28, 2019. link.)”
Canaccord Genuity analyst Yuri Lynk says, “Saudi Arabia contributed about 11 percent of SNC’s total revenue in 2017…(Debroop Roy, Allison Lampert, Shailesh Kuber, and Richard Chang. “Canada's SNC-Lavalin cuts 2018 profit forecast on Saudi strain, shares dive”. Reuters. January 28, 2019. link.)
Ongoing controversies have dogged SNC-Lavalin for a while, from bribery scandals to poor “inter-governmental relations.” However, to address the issue of the impact to our 10-Year Targets for SNC-Lavalin we will defer to the work of Edson Gould. Continue reading
SNC-Lavalin Group 10-Year Targets
Below are the valuation targets for SNC-Lavalin Group (SNC.TO) for the next 10 years. Continue reading
Buffett’s Berkshire Hathaway Buys SNC-Lavalin Unit
On May 1, 2014, it was announced that Berkshire Hathaway Energy would buy SNC-Lavalin’s AltaLink unit for $3.2 billion in cash. As indicated at Bloomberg.com (found here), “…the deal adds 280 substations and about 12,000 kilometers (7,500 miles) of transmission lines…”
On April 2, 2012 (found here), we said the following of SNC-Lavalin (SNC.TO):
“Our next stock is SNC-Lavalin (SNC.TO). According to Yahoo!Finance, SNC.TO “provides engineering and construction, and operations and maintenance services worldwide.” Edson Gould’s Altimeter, as applied to SNC-Lavalin Group (SNC.TO) presents a pattern that is quite unique. Again, Edson Gould’s Altimeter compares the current stock price as it relates to the quarterly dividend that is currently being paid. SNC.TO has a descending Altimeter with the normal undervalued range at $43.60. The next upside target for SNC.TO is at $55, however, we’re waiting for resolution on the potential downside action.
“Our worst case scenario is that SNC.TO will continues on the declining trend and reach our downside target of $30.80. In our assumption, the worst case downside target continues to slide as time passes until proven otherwise. Again, while there are major upside targets at $55 and $69, we’d rather wait for the final verdict on retracing back above $43.60 or falling to $30.80.”
At the time, we believed that SNC-Lavalin was undervalued but with some room to decline further. Unfortunately, the lowest SNC-Lavalin declined was to $35.04 on September 4, 2012. We had projected that SNC-Lavalin, in the worst case scenario, could decline –24.41% instead of –14%. We were wrong about the extent of the worst case on the downside.
As we fast forward to May 2, 2014, we see that Warren Buffett and company are finding value in the purchase of the AltaLink unit of SNC-Lavalin. However, this interest in AltaLink comes after SNC-Lavalin’s stock price has risen +27% since our 2012 coverage.
Comments Off on Buffett’s Berkshire Hathaway Buys SNC-Lavalin Unit
Posted in SNC, Warren Buffett
Canadian Dividend Achievers
This list of top 8 Canadian Dividend Achievers, published by Mergent's, includes current and former Canadian Dividend Achievers and then ranking the companies based on those closest to the 52-week low. We've updated the stock symbol to connect to the Financial Post, one of Canada's top business publications. You'll find the most complete fundamental information on these companies at the FP website. If you know of a better resource then by all means pass it on, we'd love to spread the word about quality Canadian Dividend Achievers.
| Symbol | Name | Price | % from Low |
| CCO.TO | CAMECO CORP | $24.32 | 1.21% |
| RBA.TO | RITCHIE BROS AUCTIONEERS | $20.87 | 3.42% |
| IGM.TO | IGM FINANCIAL INC. | $39.26 | 4.61% |
| IMO.TO | IMPERIAL OIL | $39.80 | 5.43% |
| ESI.TO | ENSIGN ENERGY SERVICES | $13.05 | 7.05% |
| SU.TO | SUNCOR ENERGY INC. | $32.12 | 7.42% |
| SJR-B.TO | SHAW COMM. CL.B | $19.28 | 8.87% |
| SNC.TO | SNC-LAVALIN SV | $43.50 | 10.10% |
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