SEK - Seek Limited

peter2 · 7 October 2020

Since the last post, we've gone though the COVID selloff of March 2020. SEK along with everything was heavily sold down.

SEK has bounced back strongly. I was thinking that SEK would be a good trading opp. once restrictions eased and more people started looking for jobs. However this stock price jumps around too much for me. Lots of overnight gaps.

Another gap up today as the latest Aust budget news includes incentives for businesses to offer employment to 18-30 yr. This demographic would be using the SEK job search app.

Dona Ferentes · 29 October 2020

Texas-based activist short seller Soren Aandahl from Blue Orca has taken on Seek, claiming that the business' Zhaopin is full of junk listings.

"Companies we called about their job postings on the website even stated directly that the posts were fraudulent. Our due diligence also uncovered a whistleblower claim by a Chinese college student alleging that Zhaopin pays people to submit fake resumes," Blue Orca writes in research released at 10.29 AEDT.

The short seller also claims that Seek is a roll-up, reliant upon capital markets to fund acquisitions, and the true nature of its leverage is much higher than the reported 3.2 times net debt to EBITDA.

"Rather than valuing Seek as a fast-growing online recruiting platform, we value Seek for what it is—a slow or no-growth platform whose core business is shrinking and which carries a dangerous amount of debt."

Blue Orca reckons Seek is worth only $7.20 a share. It's down 9.5 per cent on Blue Orca's report.

Seek is among the top 30 most shorted stocks with 5.23 per cent of the register loaned out to speculators, according to data compiled by Shortman.

galumay · 29 October 2020

LOL! I was just reading the report, @Dona Ferentes, Blue Orca are pretty thorough, doesnt look great for SEK.

Country Lad · 29 October 2020

Texas-based activist short seller Soren Aandahl from Blue Orca has taken on Seek, claiming that the business' Zhaopin is full of junk listings.

I know nothing about the company so this guy may be right. However, a short seller dumping on a business he is shorting, how unusual.

galumay · 29 October 2020

Like the longs being positive about the businesses they are long?

Country Lad · 29 October 2020

galumay said:
Like the longs being positive about the businesses they are long?

Yes of course, the bias depends on the position.

Dona Ferentes · 23 February 2021

SEEK Group: Solid result in the context of COVID-19

H1 21 result and outlook for FY21 are materially better than our AGM expectations
SEEK H1 21: Revenue -6% and EBITDA -1% vs pcp; broadly in line with pcp despite COVID-19

Potential Sell down of Zhaopin
... SEEK and other Zhaopin shareholders are in advanced discussions with a consortium looking to acquire an ownership interest in Zhaopin
Asia Pacific & Americas (AP&A):

Laying the foundations for growth in Asia Pacific (APAC)
... SEEK ANZ: Benefited from higher SME contribution and take up of depth products
... SEEK Asia: Key markets (HK, Singapore and Malaysia) are starting to show stronger recovery
... APAC Unification: Progressing well which gives us confidence for a more ambitious approach
... SEEK ANZ intends to repay A$9.8m of COVID-19 subsidies (primarily JobKeeper)

SEEK Investments: Strong EBITDA result driven by Zhaopin and OES
... Zhaopin: Solid earnings result driven by improving billing trends and operational efficiencies
... OES: Strong result and benefited from COVID-19 related demand for online education
... ESVs: Strong growth in revenue and operating metrics

Co-founder Andrew Bassat is stepping down from his chief executive role to be succeeded by former Commonwealth Bank chief executive Ian Narev.

SEEK is also in advanced discussions about a sell-down of its interest in Chinese job listings marketplace Zhaopin from the current 61 per cent to 23.5 per cent that would value Zhaopin at $2.2 billion.

The Board believes SEEK Asia Pacific & Americas and SEEK Investments can benefit from a greater degree of independence and focus, and is in a unique position to have two experienced executives lead its operating business and its investment arm

.. The Board is reviewing options and targeting the following outcomes:
o SEEK: To focus on the growth opportunities for the AP&A business and relevant adjacencies, whilst retaining economic exposure to Investments and Zhaopin
o Investments: To focus on being an investor and business builder that partners with emerging leaders to support their aspirations and deliver strong long-term returns. Keys to its success will include the ability to operate independently and access third party capital

mullokintyre · 22 November 2021

sek hitting a series of 52 week highs.
May have missed the boat on this one.
Mick

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