SNC-Lavalin: Dare To Buy?
By Market Blog:
By David Berman If you’re thinking about buying SNC-Lavalin Group Inc (SNCAF.PK) on the cheap, with the shares down more than 20% on Tuesday, there is a lot to consider. For sure, the news that the engineering firm has delayed its quarterly financial report and announced that its 2011 net income is likely to be 18% below earlier projections, due to various financial charges, seem like small potatoes. After all, these look like short-term setbacks. What we have here is panic selling of an exceptionally profitable company. And that can mean just one thing: Investors are looking beyond this quarter and focusing on the fallout from something far murkier. SNC-Lavalin has said that $35-million in payments made in the fourth quarter were, in the words of a press release, “documented to construction projects to which they did not relate.” Cue the internal investigation, which is what is delaying the quarterlyComplete Story »