RE:RE:RE:RE:Price action=operational loss resource downturn and Brexit.I agree that shorts will move the price much higher, but in order for that to happen you need some good news or something to trigger the price upward. When that happens, the price will move sharply higher, but I don't see that coming soon.
As for AC of $32, good luck to you. Need a 25% upside to break even. If you can afford it, keep it. I will only be interested in this stock when it closes for couple of days above $30. Untill that happens, i am on the sidelines.
I posted too much. Will stop now untill it gets over $30 and I am in the stock. Hopefully that happens soon for everyone's sake.
Good luck to all.
NomadInvestor wrote: They need a couple quaters to recover from the operational issues. Meanwhile the shorts are piling in. Remember that shorts are future buying power. Just requres you don't give into them at the time being. My AC is $32 and I don't believe the company is worth less than $5 so I'm holding tight here. Fun thought: OMERS wants 407 after all and just buys the whole shebang. They already have plenty of consulting assets.
Asterix99 wrote: The near term future doesn not look bright. The management seems incapable of doing anything right. They managed to screw up the sale of 407 and now have to pay $80m (or so) in break up fee. They said they have a plan, but obvioulsy market doesn't beleive it since the shares are hitting 52 week low almost everyday. The short interest has balooned in May and is putting increased preassure on the stock. Every news is bad.
The few things that can help the stock move up to low $30's level could be:
1) real plan to save the company
2) DPA (very doubtfull)
3) Big new contract.
Good news would trigger rise in stock price and covering of the short interest. Which could drive the price to pre Q1 earning release price. Which is I think $30 something.
The thing that can push the stock much higher.
Takeover by another company, which will not happen
Company going private to fix itself up.
Since none of these scenarios are possible, the stock price will keep sliding slowly to lower levels and destroying shareholder value. Sad situation for a lot of long term shareholders.
NomadInvestor wrote: Thanks for the insight. One other aspect to the story is how much investors were using it as a proxy for 407 ownership. The Jarislowski interview convinced me that it was more than I thought. The obvious solution to me is to crank up the buybacks and take those newly unwanted shares off the market. Whoever is left will be content with the higher risk business that doesn't have 407 to smooth out the earnings.
NiN777 wrote: A few thoughts: The reason it got liquidated so bad in the last few weeks is the operational loss(anybody who listened to the (shi***y audio to the analysts questions could testify management didn't sound very confident). I think at this point everybody questions their business model? Their EDPM division is valued at less than zero, which is ridiculous! The economy is slowing down (shrinking??) and the the FED tightening and the Saudi's pumping their excess capacity like there's no tomorrow keeps the lid on (oil) commodity prices, the copper and lumber are also getting killed which is not looking good. Low pound also reduces the value of Atkins (worst time to spin-off) but also make them more competitive and would likely help them get contracts their way, market doesn't like uncertainty so once that cloud clears up it can only help do business. I would think SNC would fare well in a economic downturn(with a freshly cleaned up balance sheet), government would likely resume helicopter money, drop the rates back down nominal rates to zero(or real interest rates in negative territory) and prop all the infrastructure projects across the board.