AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by Taggart »

tedster wrote:Taggart wrote
I might consider it........if it gets cheaper.
Like?
Like, looking at the price ratios, it's not cheap enough for me yet. I'll know it when the time comes.
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by mpav »

In these kind of situations ratios are a key factor, but also just the price....watch when it gets knocked down and rolls around at a pretty narrow range for an extended period.

At a certain point (like dare I say Manulife?) it just 'bottoms' out....in the insurers case it has been at the 10-12 buck range for an extended period.
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by Taggart »

mpav wrote:In these kind of situations ratios are a key factor, but also just the price....watch when it gets knocked down and rolls around at a pretty narrow range for an extended period.

At a certain point (like dare I say Manulife?) it just 'bottoms' out....in the insurers case it has been at the 10-12 buck range for an extended period.
I'm not suggesting it will, in the case of SNC, but since you bring up the comparison, if the company cuts it's dividend like Manulife did, back in 2009, then SNC will be off my buy list for quite a while, just like Manulife is now.
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by newguy »

http://www.businessinsider.com/how-comp ... bes-2012-4
The return on investment for bribes made in the US was $14 per dollar, higher than the international average of $11.
Companies bribe because it's the only way to get a leg up on the competition, according to the study. Even getting caught can be cheaper than following extensive government procedures.
Buy SNC! 11* return on bribes.

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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by Quebec »

The combustible fortunes of SNC-Lavalin's man in the Middle East
Another vice-president who worked closely with Mr. Ben Aissa described his approach as using “all means necessary.”
S&P Revises Outlook On SNC-Lavalin To Negative
“The outlook revision reflects our concerns regarding a potential impact on SNC’s competitive position...
This is from a WSJ blog about "money laundering, bribery, terrorism finance and sanctions".

I am thinking more and more that with two young kids at home, and a very intense job, individual stock positions have got to go altogether (in favor of pure buy and hold indexing). I have no more time for this, and I've had enough unpleasant experiences at this stage to call it quits on stockpicking for a while (GE, Home Depot, H&R REIT, Manulife, PWF, SNC). All blue chips, very safe, yeah right. Portfolio returns over the last 3 years are still slightly above a purely indexed approach (some good stock picks and opportune timing made up for the bad purchases) but not by much. Going 100% indexing, instead of just 75-80%, would not change returns that much, and would simplify portfolio management a great deal. Stock picking used to be fun for me, but seeing one of my positions discussed in the "Corruption Currents" blog of the WSJ is not what I call fun.
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by George$ »

Quebec wrote: ... --
I am thinking more and more that with two young kids at home, and a very intense job, individual stock positions have got to go altogether (in favor of pure buy and hold indexing).
Understandable. My suggestion. If you do shift to all index funds - be sure to check out Vanguard ETFs- for the dependable long term.
“The search for truth is more precious than its possession.” Albert Einstein
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by kcowan »

I guess this is some relief if misery loves company:

http://www.nytimes.com/2012/04/22/busin ... enced.html
For the fun of it...Keith
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by biker »

Walmart ............."think global act local"!
Live like you are dying but invest like you are immortal.

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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by Taggart »

Quebec wrote:
I am thinking more and more that with two young kids at home, and a very intense job, individual stock positions have got to go altogether (in favor of pure buy and hold indexing). I have no more time for this, and I've had enough unpleasant experiences at this stage to call it quits on stockpicking for a while (GE, Home Depot, H&R REIT, Manulife, PWF, SNC). All blue chips, very safe, yeah right. Portfolio returns over the last 3 years are still slightly above a purely indexed approach (some good stock picks and opportune timing made up for the bad purchases) but not by much. Going 100% indexing, instead of just 75-80%, would not change returns that much, and would simplify portfolio management a great deal. Stock picking used to be fun for me, but seeing one of my positions discussed in the "Corruption Currents" blog of the WSJ is not what I call fun.
I know the feeling exactly Quebec. Even professional investors can go cold sometimes, where all of a sudden nothing seems to work out. At least amateur investors like myself, can walk away from it for a while, and work out their mistakes, before trying again. That's what I've done.
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by Quebec »

kcowan wrote:I guess this is some relief if misery loves company:

http://www.nytimes.com/2012/04/22/busin ... enced.html
I own some WMT too, fo good measure.
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by BRIAN5000 »

Former head of SNC-Lavalin arrested in Switzerland

http://www.theglobeandmail.com/news/pol ... le2417489/
This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by Quebec »

SNC investors voice concern about scandal
“We have a board that didn’t keep its eye on things,” Stephen Jarislowsky, CEO of Jarislowsky Fraser Ltd., told Bloomberg News this week. “The discipline was pretty loose.”
A 34-page report by Anthony Scilipoti, an analyst at Toronto-based Veritas Investments, suggested police are likely to find more irregularities at SNC and that its business will start to suffer. “I don’t think it’s over,” said Mr. Scilipoti
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by Springbok »

And now for some GOOD NEWS about SNC:
SNC-Lavalin wins Alberta contract estimated at $1.6-billion

By Lynn Moore and Robert Gibbens, The Gazette May 1, 2012


MONTREAL – SNC-Lavalin Group Inc. has been awarded a contract by AltaLink LP for work on portions of transmission infrastructure projects in Alberta, the Montreal-based engineering giant said Tuesday.

The contract – estimated by an industry analyst to be worth about $1.6 billion – comes as SNC-Lavalin tries to shake off scandals that have depressed its stock price as well as its staff.
More here:
http://www.montrealgazette.com/business ... story.html
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by nerd_ferguson »

Except that AltaLink is owned by SNC http://en.wikipedia.org/wiki/AltaLink.. Regardless of the "open and competitive process" it's still fishy to me.
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by Taggart »

I could be wrong, but I get the feeling that the problems with SNC will end up similar to the salad oil scandal in Buffett's foray into American Express, in his earlier investing days. This may also eventually blow over. As long as the company can still get the contracts, then with a change of management, the company itself should remain solid.

Still not cheap enough for me though, so I'm in no big rush to invest.
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by Liam »

Taggart wrote:Still not cheap enough for me though, so I'm in no big rush to invest.
Is it cheap enough yet? I'm tempted to nibble on this one as it approaches a 52-week low. The stock is down 5% in the last week, 11% in the last month, 32% in the last year. The dividend yield is currently 2.5%.
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by Springbok »

Liam wrote:
Taggart wrote:Still not cheap enough for me though, so I'm in no big rush to invest.
Is it cheap enough yet? I'm tempted to nibble on this one as it approaches a 52-week low. The stock is down 5% in the last week, 11% in the last month, 32% in the last year. The dividend yield is currently 2.5%.
We own it, but without any knowledge of pending lucrative contracts, I can't see any sudden recovery.

In the long term, as world economy recovers and management problems are forgotten, SNC stock price should benefit. So I would look at it as a long term hold if you buy now. Dividend before taxes just covers inflation.
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by Quebec »

The latest news on Google finance:
Former SNC-Lavalin executives charged
Globe and Mail - 21 hours ago
Former SNC-Lavalin CEO arrested on fraud charges
Globe and Mail - Nov 28, 2012
Former SNC executive Riadh Ben Aissa has been charged in Switzerland. (SNC ...
Globe and Mail - Nov 26, 2012
Canada's SNC says Swiss police likely reviewing payments
Reuters Canada - Nov 26, 2012
Here is a summary of what I am reading in La Presse: Pierre Duhaime, former CEO, has been arrested yesterday. He is suspected of fraud, in the process of SNC getting the $1.3 billion contract for the building and maintenance of the McGill U health centre (MUCH). SNC could have paid $22M to obtain this contract. This is Canada, not the Middle East, boys! La Presse now speculates that the firm could eventually be banned from building the hospital and bidding on all future public works projects in Qc.

Also, former VP Ben Aïssa could have spent $139M instead of about 50, on dubious payments, according to the Swiss police. Not clear is this includes the $22M or if this is just the Middle East. The initial $50M+ now seemed to have included the $22M for the MUHC.

I'm pretty glad I sold this one.
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by BRIAN5000 »

MONTREAL, Nov. 22, 2012 /CNW Telbec/ - SNC-Lavalin (TSX:SNC.TO - News) has won the Award of Excellence for Corporate Reporting in Diversified Industries from the Canadian Institute of Chartered Accountants (CICA). The CICA's Corporate Reporting Awards are the most prestigious national awards for corporate reporting. :roll:

http://ca.finance.yahoo.com/news/snc-la ... 00260.html

I'm confused but nothing new. Thought this was about done and looking to buy some.....waiting a little longer.
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by AltaRed »

I am glad I have not bought it, though I had considered it during the depth of its dip. There is a total failure of ethics policy here (nothwithstanding it seems Quebec companies do not have much conscience in that regard) and such internally bred behaviour is hard to turn around.
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by Shakespeare »

It appears the construction/contracting system in Quebec is so riddled you have to pay to play. :?
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by Springbok »

Shakespeare wrote:It appears the construction/contracting system in Quebec is so riddled you have to pay to play. :?
It is not just Quebec. In many parts of the world construction is like that. You don't get the contract unless you buy someone off.

Larger North American companies usually have rules that prohibit this kind of thing. Gifts from suppliers are a no-no. Maybe a few free lunches and a calendar, but that's about it!

Given the way the ROW works, how does an international construction company get contracts? I suspect they all have to make pay-offs to officials.

What I don't understand about the SNC issue, is in what way what they have done is illegal. I don't believe that bribes and the like can be charged as a business expense, but is it illegal to make them? Presumably some laws have been broken. Anyone know what they are?

PS: We still have SNC in one account and it is so far at about our cost. If things get worse for SNC, I wonder if there could a possibility of a take-over by another large contractor?
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by AltaRed »

Springbok wrote:If things get worse for SNC, I wonder if there could a possibility of a take-over by another large contractor?
That lovely PQ gov't probably would not allow it as they didn't allow Lowes to takeover Rona. Even if they did, it would likely have to be another global contractor with a similar culture (of how to make deals) to avoid a merger clash/integration problem.
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by biker »

Springbok wrote:


Larger North American companies usually have rules that prohibit this kind of thing. Gifts from suppliers are a no-no. Maybe a few free lunches and a calendar, but that's about it!
Probably true when operating in the US/Canada. But outside it is usually do as the locals do."Think global ..Act local " is the mantra.
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Re: AtkinsRealis - Symbol T:ATRL (Was SNC Lavalin - SNC)

Post by Shine »

I think SNC is going to have some difficult months, maybe a year of more, ahead. Gwyn Morgan must be rethinking his decision to step out of retirement as the cockroaches emerge. I feel sorry for him. However he is an excellent CEO and may well prevail - same as Hal Kvisle at Talisman -I am hoping.

Nothing but legal issues and criminal charges for SNC in the future that I can see, and major contracts with the company will be avoided.

Stantec may benefit from these troubles.

disclosure - I own Stantec.
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