RE:RE:RE:RE:RE:RE:RE:RE:SNC 2021 valuationHi SNC2021, nice to see someone with a strong opinion on this board.
The sum of the parts might be worth 50$ . However, overall, SNC is still cashflow negative or near breakeven. Considering they still have hundread of millions of fines to pay, it is rather prudent to keep a strong cash position. Be patient. SNC has too many legacy issues.
SNC2021 wrote:
SNC value from your numbers if the units were separated are worth $50 per share...
-we agre that the royalty-concessions business is undervalued at $15
- we agree that engineering sector multiple is moving higher ( I would add that industrials and construction are in big bull market right now and moving higher they are cyclical all of these companies trade at 52 week highs). This higher multiple means that the Atkins number is light as well.
- let's use the upside to those numbers (which we agree as light) and use it against any possible downside that remains in Lstk..We should only have the Canadian infrastructure projects left which management says they will make a profit. So there should NOT be any risk left in Lstk. But we will be conservative and call the sum of the parts $50 per share.
How is management not announcing that the LSTK problem is finally behind the company and announcing a massive share buy back? It's an illogical share price in the greatest bull market of our lifetime's and industrial and construction companies are leading right now.
If the management is not going to be proactive with the share price it's time for them to go or to sell the company... between you Gabriel and me we have more share than management. You cannot justifiably ignore a share price as cheap as this when you have the cash, borrowing capacity (funds could be borrowed against the royalties business for very low rates) they just borrowed at 3.8%, and the ability to do so because Lstk is fixed. We can handle a low share price if the company is buying back share and making our stakes bigger. But doing nothing on the capital side in this environment is NOT acceptable. If they don't step up we should be pushing for someone who will. It's our money not theirs. They are running the ship but shareholders own the ship...looks like the pension funds are being complacent they need a push.
It's time to get active because management does not seem to care about the share price it's their job to care. It's a bull market and SNC has been forgotten...maybe it's the CFO that needs to be the one to lead.
We will not wait for the annual meeting docket Gabriel this has to be done now...Where is a David Taylor when you need him...he retired. Gabriel if you have as much money in this as you say you do you should be screaming from the roof tops....zerohedge, Bnn even the old Globe and Mail. Management needs to be accountable for trading at these levels. You may be the one who wakes them up! Buy back the shares until they are fair value then cut the buyback and pay that out in dividends going forward. Simple...so why are they not doing it! Time for a push.