James TelfserSNC-Lavalin Group Inc.ATRL.TOHOLDAug 30, 2023

Currently in "up trend". Consolidating higher. Large swings good for investors. Will continue to own, and buy more. 

Well diversified geographically in Canada and beyond and in end markets. Strong balance sheet, but profits are below the market average. (Will change company name and ticker.)

It has done very well and is well poised for the next five years. It has changed its name and has a new ticker symbol.

Have they atoned for their bribery sins and reformed? It's a different company now, out of the energy business and run by different people. He needs to look at this closely. It nearly didn't survive its corporate misconduct.

Many companies in the nuclear space are either government entities or divisions of larger companies. But for E&P companies, SNC has significant industry experience and it has won several contracts in various countries this year. As an indirect play on the sector, it works, and it has a big backlog. It has not been our favourite company, for various growth reasons and scandals, but things have improved immensely and very strong earnings growth is now expected. It is not 'cheap' at 27X earnings but for a nuclear-focused investor we think it has some attractions. 
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Not as much flexibility in contracts.

Does not own shares.
Very good job of getting out of turn key contracts that have been burdensome.
Expecting higher profits going forward.
Trading at discount to peers.

Must distinguish between construction companies (low margin, project risk) and consulting businesses. More of a construction company. Past scandals. Trying to pivot towards consulting. He prefers WSP and STN.

It is showing promise by getting rid of the legacy contracts with fixed prices and concentrating on the engineering side of the business. This will make it better for the long term.

Margins not as robust as some peers. Stock's done fairly well in last 2 years. He prefers other names in the group, though they all look expensive right now. He'd look at WSP or STN. Owns ARE, but that's a different kind of story.

Has owned in the past, but not currently.
Currently over bought given share price.
Wait for shares to fall before buying.
Fundamentally does not score well. 
Revenue and earnings growth not high enough.
Debt levels too high. 
Q4 loss a negative sign. 

Lots of volatility and business controversial.
Scandalous business.
Not a good investment for average investor.
Hard to value business.