SNC-Lavalin: New Management And Re-Focused Efforts = 30%+ Upside

Paul Eagles profile picture
Paul Eagles


  • Positive economic and business investment outlook in their key regions and industries.
  • Experienced and effective new management should fuel growth in the years ahead.
  • Much, if not all of the issues surrounding their previous poor business practices seem to be over and now represents an opportune time to buy.

Investment Highlights

  • Focused on reducing SG&A expenses with the integration of an ERP and HR Management system
  • Management change with a "relentless" commitment to World Class ethics and Corporate Governance
  • Growth in O&G, Environment & Water foreseen predominantly in their stronghold, the Canadian market
  • Synergies to be realized mainly between the resource segments and ICI
  • High client retention with their commitment to complete customer satisfaction and a leading safety record that is substantially below that of other industry peers
  • Renewed focus on key markets and key sectors plus the divestiture of non-core and less profitable assets

SNCAF Price Chart

SNC-Lavalin (OTCPK:SNCAF) is a World class engineering and construction firm with experience and the capability for project financing which provides them with an advantage over their competitors. Though SNC-Lavalin has been in the spotlight for corruption issues, the old management has been replaced with the new. SNC-Lavalin has come forth with their new strategy or '3 Pillars,' which shows the company is re-focusing their efforts in key regions and key growth industries that have positive outlooks, especially for infrastructure investments where SNC will be able to capitalize. A basic summary of their new 3 Pillars strategy is shown below:

SNC has also divested non-core assets and areas that have not proven too profitable and hopefully now seen all of the write-downs and impairments in relation to their recent detrimental cost-reforecasting. Escalating SG&A expenses will be reduced organically and through the implementation of an ERP and HR management system, unlocking value to shareholders. Institutions are increasing their positions which shows market sentiment is shifting to the positive. SNC is well positioned in a positive economic environment in its two key regions and future catalysts such as securing future infrastructure projects as governments and businesses alike loosen their capital expenditures, could push the stock price

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Paul Eagles profile picture
I am a BBA Finance graduate who began trading a few years ago while I was still a physics student. After taking a few economics classes and no real understanding of how the complex financial system works, in autodidactic style I opened a trading account and began teaching myself the mechanics of the financial markets. Fast forward a few years and I found my true passion in life. My insatiable curiosity lead to many opportunities in the finance field. For example, I became the Chairperson, Lead Portfolio Manager and a Research Analyst for my school's student run investment Portfolio. I have also worked as an investment analyst with a global institutional investment consulting firm while studying, participated in multiple open-outcry trading competitions (Top 15% each time), participated in a CFA Case Competition, helped an alumni and friend secure funding to launch and ultimately commercialise a new product, and even created financial models for other business plans for entrepreneurs.Currently I am actively seeking an analyst/associate level position with an intelligent and experienced team. I am looking for companies with a strong progressive culture with an incubating environment for young energetic professionals. I have completed the Canadian Securities Course and plan to take the CFA Level I as soon as I am able to secure a full time position.I also actively build a network of like minded progressive, energetic, and actualizing individuals who are also interested in building a conducive environment for our society.I am also interested in working on Research projects involved with economics, investment management, mutual funds, hedge funds, alternative asset classes or the like.I have frequently been told that I am one of the hardest working and diligent people that they know. I love doing research and I have an insatiable curiosity that drives me to get the answers you need. Please send me a message if you would like to work with me or if there is anything I may be able to help you out with, I would be more than happy to hear from you!

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