The Successful Investor, in the November, 2020, issue, says hold SNC-Lavalin Group Inc., recently $22. The Investor said buy 12 times from April, 2000, to December, 2015, at prices ranging from $12 to $56 (the stock split 3 for 1 in March, 2006). Assuming a $1,000 investment for each of the 12 buys, the $12,000 position is now worth $13,376. SNC is an engineering and construction management company that specializes in large-scale infrastructure projects. It recently won a contract to help the U.K.-based Manchester Airport Group design new airport terminals and transportation links, with the goal of making them more efficient. Terms of the contract are undisclosed. Even so, the Investor reckons that this sort of contract fits in with SNC's desire to exit lump-sum, turnkey construction projects, which expose the company (and therefore shareholders) to cost overruns. This desire was at the heart of a restructuring plan that SNC unveiled last year. The Investor notes that the restructuring involves job cuts, which will weigh on short-term profits. Hold.
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