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SDM - Sedgman Limited

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So_Cynical said:
Yep as per usual still holding, the whole coal sector is still very depressed, so if your a longer term believer as i am then the current weakness is an opportunity.

DSB is another coal services provider you mite want to have a look at.
Click to expand...

DSB is mostly in contract mining whereas SDM has a lot more capital works... so slightly different revenue outlook. MYE is the closest peer to DSB.
 
So_Cynical / SKC - you guys still holding this?

Just had a read of the HY report - seems pretty bleak and can't see this going anywhere for some time. Down across the board on basically every key metric and they don't seem to confident about the future...
 

As per usual im still holding, SKC i doubt very much.

Sedgman like the rest of the coal industry/stocks is having a hard time, the coal price and demand hasn't bounced like some of the other hard commodity's...im a believer in coal and energy in general so will hold into the foreseeable future.
 
I have some SDM shares. Welcomed the announcement about ditching the MDM acquisition as I suspect most holders did.
Sent off an email today to the company secretary asking if there will likely be an update soon clarifying the company's condition.

In particular I asked if there could be comment on the company's $49m net cash balance at Dec 31. Has there been much erosion from the costs of the aborted MDM takeover and the litigation against DML?

Also asked what is happening with the $90 million EPC Mungari Gold Project announced in February and predicted to start construction in April. No word of it yet so will it be deferred/canceled? Expect another hit to SP obviously if any disappointment there. Note gold too, SDM not just coal.

Also asked if the company now intends to conserve cash while mining investment slides or is Segman still looking for a way to blow its surplus cash?

I'm actually not completely against buying a few more if the picture clarifies and they hang on to that cash. Good record until this last half.
 
This stock hit my radar today when I was trawling for bottom feeders. It is displaying a near double bottom which may send it higher soon.
 

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They didn't respond to my emailed queries. It continues as a mystery as to whether the $90 million EPC Mungari Gold Project announced in February and predicted to start construction in April has been deferred/cancelled or just delayed.

Weekly chart shows a record high volume in the last week of May, then an engulfing candle this week, with the low just off the level of the major low in 2009

Stock held and sentiment:hold


http://i42.tinypic.com/acbxj4.gif
 

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Have to be a pretty robust chart low formed for a mining service company specializing in coal.
Can't trust a company where there is no response to a shareholder's questions though.
Performed well during the commodities boom and has cash net of debt.
But then again the boom looks over and they've just managed to wriggle out of a badly timed acquisition that would have consumed the cash and added debt and share issuance.


 
I did some of my weird scans over the weekend which sometimes come up with odd results. This was one. It would have to make the same remarkable recovery as it did in early 2010. Still a break may be worth following for a quick trade.

Cheers
Country Lad

 
Hi Country Lad
Whats the Box Size and Reversal amount for the P&F chart above? I am trying to plot in Amibroker.

Thanks
 
notting said:
Given New Hopes efforts today one would suspect this may be short lived.
Volume was hardly cracker jack.
Click to expand...

Just an amateur view but ...

.. NHC performance might affect SDM sentiment, but practically the most important measure should be volumes of coal being produced in Australia and other locations where SDM is active. It's primarily but not exclusively a coal handling/preparation plant builder, maintenancer, operator - not as sensitive to coal price as a producer like NHC, more sensitive to volume of production. Profit margin could be affected by squeezed producer clients admittedly. On the topic of coal volume I've been looking around for an article that I recently browsed predicting coal volume will rise through to 2017 but can't now locate it.

In the mining services sector generally there were a few companies that were probably punished unduly by market sentiment when capital expansion by producers was seen to have peaked. These companies were the ones that were more about volume of production than development or exploration: possibly FGE, MLD, NWH, LYL, SXE ...
 
finicky said:
These companies were the ones that were more about volume of production than development or exploration: possibly FGE, MLD, NWH, LYL, SXE ...
Click to expand...

I think it is more about how those companies have managed the changes of the business of their customers and adapted to the need for a different business model.

LYL and MLD are probably handling the changed conditions better than the others.

Cheers
Country Lad
 
SDM - break-out. Are we there yet on the CL P&F chart?

I am still wary due to the thin bid depth.
 
peter2 said:
Are we there yet on the P&F chart?

I am still wary due to the thin bid depth.
Click to expand...

Yes break both the P&F and CBL. Volume reasonable, but the market sentiment is nothing to write home about. Let's see what tomorrow brings after this break.

Cheers
Country Lad

 
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