Assuming this story has substance to it, and assuming one option is that the rail line may be potentially funded and owned by the Cameroon govt rather than SDL (so it could be used for freighting other commodities/goods), would one upside be less capital expenditure needed by SDL for the rail line and therefore enhanced shareholder value? However, does downsides include less LT revenue for SDL in allowing other companies share the rail line (assuming SDL owned the line) and SDL having to pay for use of the rail line?
Either way, it looks like things are hotting up in the region and regardless of the above, SDL will be a major contributor to the Cameroon and Congo economies in the coming decade and beyond. And with further exploratory activities in the vastly untapped region, the potential for SDL is immense in the years to come.
SDL Price at posting:
45.5¢ Sentiment: LT Buy Disclosure: Held