I'm glad this topic of "Sovereign Risk/Political Risk' had gained a lot of attention and responsible SDL shareholders have been putting a lot of effort to dig a bit more on this issue.
This is serious stuff guys. I don't want to put a lot of comments on this because I may be misunderstood again. But based on my experience, whoever rules (or got the power) in such countries, he/she or they could change the rules or modify the rules to their advantage.
A perfect example was that the two(2) top/big miners of the world just walked away from our neigbour country (I don't need to name it) - after establishing big mining operations there operating very profitably and putting $Billions of Exploration/Development/Research/Feasibility Studies on a lot of their bigger mineral deposits - because of the fact that they have changed the rules, and maneuver their legal interpretations and decisions on awarded contracts in the past. And this country is not even that problematic country now (which is widely known as a newly-converted country of Democracy).
If you're exposed to those cultures/traditions/races, you would understand better what I'm trying to say here. It's more of culture, territorial influences, races and their beliefs that would influence what routes and decisions they will end up doing. It is not too distant past when Africa insisted and pushed out the people who looked different from them - and this is a part of their culture and race.
Business-wise my friend, it is a lot more intense and delicate to tackle, believe me. They can turn the table around while you are still sitting there in front of them. If you are a serious investor, you have to look at your odds to run for cover if you have a choice.
Of course, there is always a chance they could do otherwise as well, and be reasonable and have their common sense prevail. But more often than not, if they are still hungry for power and money, the rules and power can be treacherous and abusive. And surely, they will look after themselves first, than their so called "own people".
That means, whoever pays the highest, they will gain the contract.
That's all I can say. Have a good Saturday evening. Back to my beer.
All the best guys. Keep researching.
Cheers.
SDL Price at posting:
52.0¢ Sentiment: Hold Disclosure: Held
