SNC-Lavalin: Engineering A Margin Of Safety

The McGill University Health Centre Photo Credit: SNC-Lavalin
The McGill University Health Centre Photo Credit: SNC-Lavalin

This is my 2nd article published my Seeking Alpha. My first one, Dollarama – A Stock That Generates Dollars, is still available for free at the moment.

This time SNC-Lavalin Group was the focus of my analysis. I make the case that SNC is currently an excellent contrarian opportunity for several reasons. The article will be free for 30 days. On the blog I’m only allowed to publish the first 250 words so feel free to click on the link to read the entire analysis.


SNC-Lavalin: Engineering A Margin Of Safety
Reposted from Seeking Alpha
By Brian Langis

SNC-Lavalin Group US: SNCAF.PK Canada: SNC.TO

Note: Dollar amounts are in Canadian $ unless mentioned otherwise. USD-CAD 1.0262 Price of 1 USD in CAD. Source: Bloomberg

“An engineer is a person familiar with known scientific truths and respectful of the laws of nature, one who plans, executes, and economically manages works that will improve the comfort and well-being of humanity.” Arthur Surveyer, November 1917

“In every crisis, there is opportunity.” – Chinese proverb

Investment Thesis

The central focus of this article is to determine whether or not SNC-Lavalin (SNC) is currently undervalued compared to its intrinsic value. In other words, is SNC a bargain? This article will demonstrate that SNC suffers from a price and value disparity because of the corruption scandal and the market not realizing the full value of its investment portfolio. Why? The misconception provides an opportunity and exploiting it will lead to superior performance.

For the rest of the article: SNC-Lavalin: Engineering a Margin of Safety


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