The last article about SCI was written during May 2015 here
Then, I said that I believed SCI is a solid blue chip. The pipeline for the utilities is superb and I believe it’ll rebound from this crisis.
Have I differed?
To say the least, yes. Yes not because SCI fell from $4.20 all to way to $2.50, but because developments happened and news emerged.
Sete Brasil has changed the fundamentals of SMM, a 60% owned subsidiary of SCI.
To be honest, this Sete Brasil thing has changed the fundamentals from May 2015 when I still had much confidence in a near term rebound in SCI/SMM price.
Why I changed my mind?
Firstly, Oil prices fell, and it fell hard. Additionally, the oversupply of oil doesn’t seem to be disappearing anytime soon. That’s different in May 2015 when people are still expecting OPEC to convene a meeting soon …