Originally Posted by TransitJack
SNC is still a massive corporation despite what comes out of the Libyan turmoil. Not trying to say that they stock dip isn't a blow to them financially, nor that continued gloom may follow, however, they have so many business interests world -wide operating many different categories of the economy. They are HUGE!
Frankly, Evergreen line construction is so small compared to the overall revenues the main company generates annually. They would be more than capable of bidding, winning, and completing the EG line despite the recent dip in stocks. It really doesn't relate to our local project anyways.
The 2008 Financial crisis has thought us that even the biggest corporations can literally fail overnight with little or no warning....
The one thing that is scary from the Libyan turmoil is the fact that the company is involved with these mysterious payments, which is what makes the investors jittery. So much so the drop pretty much wiped out $1.5 billion of market value, every major investment dealer downgraded their stock bigtime, and it still showed no sign of recovery (not even bargain hunters are touching it now). Ultimately, its not the fact that they won't be as profitable this quarter, but the concern really is off trust.
Engineering firms must ensure they can be trusted above all else, after all, not only are we talking about billions of dollars in infrastructure projects, but also the safety of the people that will be using those projects. A shady deal such as the mysterious, unaccounted $35 million payment, would show prospective clients, including the Province of BC, that perhaps this isn't the best company I would like to put my dollars in. And if they are a bunch of lying, scheming SOBs, who knows how the quality of their projects would be after they are built.
But its still too early to tell, and we should await the outcome of their...investigation. Its just a pity that this happen, because before Tuesday, the one bidder that I would think which could deliver Evergreen Line at its finest was SNC Lavalin. We shall see...