SFC - Schaffer Corporation

[barney]

@barney there is not much free float though, very tightly held by the top 20.

Haven't followed this since my last post back in late August, but the lack of Sellers back then has seemed to morph into a continual rise higher.

I have no idea on the Stock but well done to you guys who understand and have made a few bob out of it.

I find it amazing that a Stock worth so much is so thinly traded

 

[galumay]

I find it amazing that a Stock worth so much is so thinly traded

There is really no reason for any correlation between the price of a share and how much it trades. Not many shares issued, Its not got a lot of free float so that reduces the interest, its not got any institutional holders, there is no broker coverage and its not something that traders would normally look at so there is no noise about it from the HC rampers & pumpers.

Its also not a sexy business, no SaaS here, no tech, no inspiring narrative - just a funky mixture of a REIT/LIC and a leather seat maker with a concrete casting business hanging off the side of it!

 

[galumay]

SFC H1 report out today, slightly beating guidance and a strong start to the FY. Market liked it pushing them to ATH of $20 up nearly 10%.

 

[galumay]

A very good year for SFC, my little WA car-seat/concrete-gnome/REIT/LIC.

 

[galumay]

What a difference 6 months makes!

Crap H1 2022 for my little illiquid WA car-seat/concrete-gnome/REIT/LIC, $SFC - the leather business heavily impacted by chip shortages and supply chain issues and LIC crushed by the fall in the SP of their main #shitco.

GROUP INVESTMENTS.

 

[divs4ever]

i wouldn't go as far as say 'crap ' , unexciting , i could agree with that

i glance at this from time to time but haven't bought in .. yet

DYOR

( being illiquid isn't a total turn-off for me )

 

[galumay]

I think crap is fair, not a reflection on the business, just on the circumstances of the half year. I suspect management would agree with me!

 

[InsvestoBoy]

What a difference 6 months makes!

Crap H1 2022 for my little illiquid WA car-seat/concrete-gnome/REIT/LIC, $SFC - the leather business heavily impacted by chip shortages and supply chain issues and LIC crushed by the fall in the SP of their main #shitco.

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GROUP INVESTMENTS.

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Please explain "concrete-gnome" lol especially hyphenated.

 

[galumay]

They also have a little concrete casting business.

 

[divs4ever]

i threw a bid in today but the price wandered away from the target so cancelled the order , maybe another day

 

[finicky]

Would be on my crash hot list but I'm not into leather (really)

 

[galumay]

Interesting FY2022 AR from my little car seat/concrete gnomes/REIT/LIC, SFC out this morning. They have weathered the impacts on the business fairly well I believe. The accounting changes to value the property holdings at fair value will take me a bit of time to digest. The biggest single impact on income was the $32m turnaround in "Net (loss)/gain on other financial assets at fair value through profit or loss - non-current". This impacted profit by about $16m after allowing for a similar "Net gain on investment property at fair value". Might have to ask them for a bit more detail around what these non current financial assets are. The non-current bit is what I cant quite identify.

I emailed them and Jason replied explaining its simply the bag of equity and property syndicates they intend holding longer than 12 months. The impact on these valuations on earnings is really largely irrelevant anyway, my focus is on the cash in this sort of situation.

Looking through the shareholder presso, (i usually only read the actual annual report), its obvious that the holding in HTG is the main culprit.

 

[galumay]

A nice result for SFC, FCF much improved as well, car seats doing better, Delta more profitable than its been in all the years I have held SFC & property investments doing well.