Welcome to the world of investing in water EPC companies.
What is happening in San Quintin is the Mexico is the norm. Delays happen with every change of elected govt. The new govt has to renegotiate, or seen to be reviewing all contracts because they need to gain legitimacy upon entering office.
Case in point. Duerte of the Philippines, in wanting to crack down on big business in his efforts to endear himself with voters in pushing a populist agenda, ordered the renegotiation of the contracts of Ayala's Manila Water and Maynilad Water Services. The contracts were extended by a previous administration until 2037. That move wiped off Manila Water's MC by half! https://invst.ly/ppbxq. Many comments have been made by myself and others that Custom Engineering Services (CES) is not that great a biz because of political risks. IC, in my opinion, has a window of 4 to 5 years to benefit FLC before the uncertainty of the next govt comes in and renegotiates.
As I have stated before, I am staying in FLC for MABR. "Smart Products Solutions revenue is expected to grow to at least US$32.0 million, a more than 20% increase from FY 2019 (FY 2017: US$10.0 million, FY 2018: US$22.0 million and FY 2019: US$26.5 million)."
I have said enough.
FLC Price at posting:
39.5¢ Sentiment: Buy Disclosure: Held
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