The Successful Investor, in the March, 2021, issue, says hold SNC-Lavalin Group Inc., recently $26. 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 $15,808. SNC is an engineering and construction management company that specializes in large-scale infrastructure projects. Over the last several months, it has been exiting lump-sum, turnkey construction projects that expose it to cost overruns. It also decided to sell its oil and gas business to Kentech, a Dubai-based energy services firm. The deal should close by midyear and the price tag was not disclosed. SNC will, however, write down the value of the oil and gas business by $260-million to $295-million. The Investor says shareholders should also expect SNC to set aside $140-million to cover future lawsuit settlements related to its exit from some construction projects, as well as write off $155-million worth of receivables it no longer expects to collect. SNC now trades at 16.3 times its likely 2021 earnings of $1.60 a share, and its dividend yield is 0.3 per cent. Hold.
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