SNC Lavalin shares

[Robertbarlage]

Are they going to tank?

[Oliver88]

Dividend was chopped severely.

Hopefully they tank and hit $0 due to their crooked executive.

[farmaholic]

I bet they won't be allowed to.

They will have a parachute AND safety net to assure a soft landing.

Too big to fail.

Edit in: oh yeah it's QuebecCo based

[MBgrower]

Canada Pension Plan probably biggest shareholder at the direction of our supreme leaders.

[jazz]

They are already banned by the world bank for overseas work and now we in Canada all know about them. Anyone that hires them is going to be tacitly supporting corruption so their contracts will dry up. Only way to survive is to get bought out and move. Good riddance I say.

[farmaholic]

Likely only the tip of the iceberg...."likely"....I'd bet the farm it "is".

[bucket]

Either through the CPP or the taxpayers if SNC fails .....the money is coming out of the same pocket....

Its corruption right along with Bombardier .....BTW anyone hear if any of the billions to help develop the C Series jet came back to the taxpayer when it was given to Airbus?????

Apparently , according to Micheal Wernick, talking about the corruption in government on sites like this causes him enough concern to issue warnings....

What he should be doing is focusing on stopping the criminal activities ....

The conservatives are asking if the RCMP have been called in on this SNC affair.....someone should be calling them...

[15444]

Still rated as a good buy on the market. SNC failing would be the equivalent of ripping out the rail main lines - not going to happen. You will pay a 30% carbon tax and have it all funnelled into SNC before anyone allows it to fail. It is a Quebec busines, and just like Indians, they have priority over everything else, especially white English-speaking farmers - it's in the fine print of the Constitution - followed by the words, 'Now get back to work'.

[foragefarmer]

The stock poses a great buying opportunity! That's what's worth focusing on, as everything else going on with it is out of my control.

That's how the big boy's make their money!

[sumdumguy]

Lots of new Lexus sportscars. Can you imagine?

[bucket]

Lots of new Lexus sportscars. Can you imagine?

Interesting comment ...people invest and blow some of their gains on a highly depreciating item??????

[jazz]

Interesting comment ...people invest and blow some of their gains on a highly depreciating item??????

Wealthy people are sort of like farmers. Asset rich cash flow poor. Elon Must who is worth 20B just took out a $61M line of credit on his home. These guys hang on to hard assets no matter what. Shares are vapourware IMO.

https://business.financialpost.com/real-estate/mortgages/asset-rich-but-cash-poor-elon-musk-recently-took-out-five-monster-mortgages-worth-61-million Asset-rich but cash-poor

[tmyrfield]

Wealthy people are sort of like farmers. Asset rich cash flow poor. Elon Must who is worth 20B just took out a $61M line of credit on his home. These guys hang on to hard assets no matter what. Shares are vapourware IMO.

https://business.financialpost.com/real-estate/mortgages/asset-rich-but-cash-poor-elon-musk-recently-took-out-five-monster-mortgages-worth-61-million Asset-rich but cash-poor

This is the problem with using FMV rather than book value on balance sheets to measure wealth. It looks good and lenders like it and will gladly make loans on it. |The trouble is that the wealth created is from inflation of assets rather than from business profits, only one of these will pay the bills as they come due, without taking on even more debt. Then eventually there is going to be a tax bill that comes from capital gains that needs to be paid, easier if the business is profitable. According to the article Tesla has never made a profit, [I]'m not sure it ever will.
Shares are like land and houses though, they are only worth what the last guy paid for them, the day may come when someone will say, hey it's just not worth that much.

[foragefarmer]

Elon Musk owns 33.7 million shares of Tesla worth appox 10 billion and he continues to buy them up. He see's something there.

Taking a $61 million line of credit out on his house was probably to buy more shares. Besides $61 million is chump change to him

I would say he has a lot of liquidity, as shares can be sold with a push of a button. Try that with a farmer's assets of land and machinery and getting fair market value!

[macdon02]

Wealthy people are sort of like farmers. Asset rich cash flow poor. Elon Must who is worth 20B just took out a $61M line of credit on his home. These guys hang on to hard assets no matter what. Shares are vapourware IMO.

https://business.financialpost.com/real-estate/mortgages/asset-rich-but-cash-poor-elon-musk-recently-took-out-five-monster-mortgages-worth-61-million Asset-rich but cash-poor

He's hedged the value of the property leaving the bank holding the bag. He has the cash value. Any downturn in property values and he'll simply turn it over. I don't think he cares about his credit rating.