SNC Lavalin (SNC:TSX) sold its stake in the Ambatovy nickel mine in Madagascar for $600 million this week.
The sale was roughly 10% of its $6 billion market cap. Of course, the stock moved but not nearly as high as you would expect because it’s still under investigation for bribery in Canada. The scandal has been plaguing the company and the stock price hasn’t had much life as a result. There are a few investors like myself who think the charges will have a minor impact on the company. If you are comfortable with the risk involved in this potential turnaround/asset play you’ll be rewarded. Some analysts have stated they believe the stock should be worth twice as much as what it is today.