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Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Bullboard - Stock Discussion Forum Atkinsrealis Group Inc T.ATRL

Alternate Symbol(s):  SNCAF

Atkinsrealis Group Inc., formerly SNC-Lavalin Group Inc., is a professional services, and project management company. It delivers end-to-end services across the whole life cycle of an asset including consulting, and advisory and environmental services. Its segments include Engineering Services; Nuclear; O&M; Linxon; LSTK Projects, and Capital. The Engineering Services segment includes... see more

TSX:ATRL - Post Discussion

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Post by Gabriel on Dec 09, 2020 9:24pm

News

Hello everyone,

Regarding options - Please take the time to read. Copy if needed and get it right:
Options are tools to reduce your average cost. If a stock is trading at 22$ and you want to buy it, you can sell for say 1$ a 20$ put option (your obligation for a duration of time to buy it at 20$). Should the stock drop below that strike price of 20$ your cost would be 19$. i.e. better than the 22$ that you were willing to pay. If the stock does not drop below 20$, you keep the 1$ premium. Once you own the stock, you can then sell say a 22$ call option for 1$ or the tranche that is above 22$ hereby further reducing your cost to 18$ albeit limiting your gain to 4$. You can also sell another put at 17$ for another 1$ further reducing your cost to 17$, whether exercised ((17$+17$)\2 = 17$) or not (17$) a second time. Sure your gain now is from 17$ to 22$. In conclusion options can work for you. As you probably know, I teach at an engineering faculty and when we launched our graduate program in financial engineering, I taught the course on derivatives including all the theoretical models underlying their valuations, so I know whether the premiums make sense. 

Practically, I was able to reduce my average cost down by over 50% in the past on some stocks. In the case of SNC I was only able to reduce my initial cost of 37.40$ down to 24.25$ because I never had the heart to really sell lots of calls at these ridiculous prices (I mean below 40$ makes no sense).

Regarding ownership:
https://www.dropbox.com/s/758l436sx916tol/Image%202020-12-09%20%C3%A0%2020.33.jpg?dl=0

Regarding value and future stock price:
Arguably a deeply undervalued stock which will amply reward the patient and intellingent investor to quote the father of investing.

Happy holidays from your company:

https://twitter.com/SNCLavalin/status/1336672202113110017
Comment by Form001 on Dec 10, 2020 7:07am
This post has been removed in accordance with Community Policy
Comment by Form001 on Dec 10, 2020 11:20am
This post has been removed in accordance with Community Policy
Comment by tomperns on Dec 10, 2020 1:42pm
We all agree that we are undervalued. Meanwhile ABNB just opened at $150 (over $100B valuation) and the company is not profitable. I definitely don't see eye to eye with the market or I need a lesson or 2.
Comment by Gabriel on Dec 10, 2020 3:32pm
Tom, Thank you for your post. There is a substantial amount of short sales (5.6% now of the float on SNC and SNCAF) which Larry MacDonald from the Globe initially reported. 7.5m shares shorted on US market - SNCAF Source: https://www.marketbeat.com/stocks/OTCMKTS/SNCAF/short-interest/ 2.3m shares shorted on the TSX - SNC Source: https://www.iiroc.ca/industry/marketmonitoringanalysis/Pages ...more  
Comment by Bigger123456789 on Dec 10, 2020 6:28pm
Wonder why the pull back?? Seem to happen after the 750k cash donation.
Comment by tomperns on Dec 10, 2020 6:53pm
Well we desperately need one of the catalysts you mention as catch the shorts because right now we look like shark meat to them.
Comment by Alexcanada on Dec 10, 2020 6:57pm
I am praying for SNC under 21$ so I can add more. As said previously this week, my finger was itching to buy more but I do not want to pay 24-25$ for additionnal shares. 21 or 20$ is fine with me.
Comment by finalstep on Dec 10, 2020 7:20pm
votre raisonnent est rationnel, Garder des fonds pour diminuer le cot d'entr est lgitime, Par contre il faut savoir quelle valeur vous donnez SNC, si le titre reprend une valorisation juste....... Possible que vous regretterez avoir manqu l'opportunit actuelle
Comment by Bigger123456789 on Dec 10, 2020 7:29pm
I failed grade 9 french, thanks for google translate.lol
Comment by Gabriel on Dec 10, 2020 9:10pm
Thank you for your understanding Bigger, Ron and all the good English speaking folks on this board. I really appreciate.  Since I have always opened very truthfully to y'all on this board, I will confide that my mother tongue is not French either, but I know Moliere and Corneille :) and make it a point to respond as warranted in a very respectful canadian way ;) I cherry picked and love ...more  
Comment by BadatMoney on Dec 11, 2020 11:57am
In Saskatchewan we had good french immersion schools where they teach french (international, not Quebecois). I did not enter that stream. I am learning German on my own time though. I have encountered more German speakers than french on my engineering projects. Aside from having German heritage, I wanted to know what those guys are saying in front of me.
Comment by finalstep on Dec 10, 2020 7:10pm
Comment by finalstep on Dec 10, 2020 7:12pm
le problme des dcouverts est que si descendd a un certain niveau, pas trop loin.... Les acheteurs se manifestent et la couverture devient mine en fonction de la hausse du titre.
Comment by Gabriel on Dec 10, 2020 9:23pm
Finalstep / English below. Je croirais que dans ces circonstances, les shorts se premunissent en achetant des options d'achat, ce qui en soi, leur assure le droit de racheter autant de titres vendus a decouvert a un bas prix de levee pour se couvrir entierement. I would assume that shorts are buying an equivalent amount of calls as shares shorted, when the price drops, ...more  
Comment by finalstep on Dec 11, 2020 3:14am
Bien possible qu'ils utilisent les options comme police d'assurance, mais a en fait beaucoup et la demande en options aurait une incidence importante sur le prix
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