SGM - Sims Limited

[Nicks]

It is down quite alot today after announcing it has tripled Net Profit. With the AUD heavily down I think this is a good opportunity today.

 

[cornnfedd]

Sims Metal announces capital raising to fund growth strategy

SIMS Metal Management has announced a $475 million capital raising to fund a growth strategy.
It will raise $400 million from a fully underwritten institutional placement at $21 a share, the company said in a statement today.
A share purchase plan will raise a further $75 million.

Sims said the equity raising provided "financial flexibility to pursue growth agenda, including accelerating the company's acquisition growth strategy and currently identified capital expenditures relating to technology efficiencies".

The structure of the capital raising aimed to "balance the interests of all shareholders".

http://www.news.com.au/business/story/0,27753,26375481-14334,00.html


anyone having a look at this one?

 

[piggybank]

The company doesn't appear to have too many friends (or followers) given that the 2 threads that are dedicated to this stock had their last posts loaded before 2010.........

​

 

[So_Cynical]

Bought 6K worth for the super fund today @ $6.37 - great boring business, over 250 facilities across 5 continents, a global multi currency operation, true aussie success story...big mature business trading at an all time low.

 

[Triathlete]

Bought 6K worth for the super fund today @ $6.37 - great boring business, over 250 facilities across 5 continents, a global multi currency operation, true aussie success story...big mature business trading at an all time low.

I see the All time low was at $1.89 on the 13/11/1992.

Strategic comment from Lincoln Indicators Stock doctor below.

SGM is in a Strong Financial Health position (GR1), but fails our management assessment criteria (GR2). Thus the company cannot be considered a Star Growth Stock. Additionally, the company's dividend yield is below that of the broader market. As such SGM cannot be considered a Star Income Stock.

SGM operate in a low margin environment with increasing efficiencies the key to improving profitability. SGM is currently undergoing an improvement process that is targeting to produce better sustainable returns in the future.

Consensus price target shows $8.45 so certainly showing value at current prices.

EPS for this year is -51%
ROA................... 1.64%
ROE................... 2.62%
Rev Growth....... -51.06%

Technically does not look good at the moment still showing signs that the stock could fall further, good luck with it anyway.

 

[skc]

Bought 6K worth for the super fund today @ $6.37 - great boring business, over 250 facilities across 5 continents, a global multi currency operation, true aussie success story...big mature business trading at an all time low.

Why buy recycled steel when new steel is cheaper than cabbage?

http://www.smh.com.au/business/mini...now-cheaper-than-cabbage-20150708-gi81ea.html

 

[Value Collector]

Why buy recycled steel when new steel is cheaper than cabbage?

http://www.smh.com.au/business/mini...now-cheaper-than-cabbage-20150708-gi81ea.html

Because it still takes less energy to melt scrap than it does to produce steel from Pig Iron (Coal and Iron ore)

As long as it costs more money to transport scrap steel to the tip and pay a tip fee, than it does to take the scrap to a scrap yard and get paid some peanuts, the scrapping industry will be generating scrap.

Do you know how much it would cost to put a car into land fill, why would you pay to do that when you could scrap it and get paid even if you only get paid $20.00 its better than having to pay $100 to bury it.

and why would a steel mill not use scrap if its available, its cheaper and most of their systems are setup to use it, some steel mills only use scrap.

 

[So_Cynical]

I see the All time low was at $1.89 on the 13/11/1992.

I think they did a code change about a decade ago, that's probably the reason for the discrepancy.

Anyway this is for the super fund so im limited to the ASX300 (AustSuper) and i have had terrible luck with the superfund, my specialty really is the smaller end of the market.

and why would a steel mill not use scrap if its available, its cheaper and most of their systems are setup to use it, some steel mills only use scrap.

And many companies like to use recycled product because it's seen as green and PC

 

[So_Cynical]

Brought 6K worth for the super fund today @ $6.37

Closed at $7.63 today, would of sold but i slept in, open profit 19.7% nice pop for 1 month.

 

[peter2]

Nicely done SC. The initial price target must be the gap fill up at 9.25.

I couldn't buy into this sector at this time even though the chart shows a nice H&S reversal pattern.

 

[So_Cynical]

Nicely done SC. The initial price target must be the gap fill up at 9.25.

Hit 9.30 today...took a while to fill the gap. im still holding.

--------------

(13th-January-2016) Bought 6K worth for the super fund today @ $6.37

Did it again, yet another double bottom bought, been a great buy indicator for me over the years.
~

 

[galumay]

Hit 9.30 today...took a while to fill the gap. im still holding.

Did it again, yet another double bottom bought, been a great buy indicator for me over the years.
~

The market is a funny beast isn't it?! A friend shorted these when they were over $9 last time and made a great trade on that drop down to where you brought in.

His logic seemed perfect at the time, his analysis was the market didn't yet realise how much trouble the company was in due to such low iron ore prices and the release of their half yearly report was likely to lead to a big drop in SP.

Now your logic about them being oversold and good buying has proven to be equally prescient!

The real art would be making coming to both those conclusions and winning on both trades in either direction!!

 

[So_Cynical]

The real art would be making coming to both those conclusions and winning on both trades in either direction!!

That would be something to behold ^ i reckon picking tops would be harder...have always thought that if one could just focus on 10 stocks say, with total devotion to just those ten, perhaps a certain directional confidence could be developed over time.

i've picked multiple bottoms with a few stocks, precise tops rare as hens teeth, general big tops i certainly don't want to buy into.

 

[So_Cynical]

(13th-January-2016) Bought 6K worth for the super fund today @ $6.37

Intra day high of $12.90 today didn't see that coming, 100% profit in 10 months, the latest pop has something to do with America being great again i imagine. :dunno:

 

[So_Cynical]

UBS Research rating: BUY

^ Hard to believe after the massive run up over the last 13 months, anyway SGM has been a big winner for me and much needed by my super fund, unusual for me to throw 6K at a stock in one hit but so happy i did, my confidence was high perhaps due to the fact that i had been watching for so long.

Lets hope 13.50 comes along quickly again so i can get out, i have no confidence in an American revival.
~

 

[galumay]

A great pick on your behalf SC, I thought you had done well last April when I last posted in this thread - holding onto SGM has turned out very well for you. Why have you set your mind on a sell at $13.50 - is that an 'anchor' created by the previous high or is there something else?

 

[So_Cynical]

Why have you set your mind on a sell at $13.50 - is that an 'anchor' created by the previous high or is there something else?

$13.50 is the recent top, its enough and i just have no confidence in America being great again...winding up the super account anyway.

 

[greggles]

Hit hard by global trade tensions, Sims Metal Management has delivered an ugly profit downgrade today. The company announced that 1H FY19 EBIT is likely to be more than 12% lower than the year before, at about $109.8 million.

The market punished SGM following the announcement, sending it down to a low of $8.95 before recovering slightly to be currently trading at $9.06, down 17.26% from Friday's close.

Sims has halved in price in seven months. I expect that negative sentiment will continue to weight on it in the short to medium term given the challenges that it faces moving forward.

 

[Miner]

Hit hard by global trade tensions, Sims Metal Management has delivered an ugly profit downgrade today. The company announced that 1H FY19 EBIT is likely to be more than 12% lower than the year before, at about $109.8 million.

The market punished SGM following the announcement, sending it down to a low of $8.95 before recovering slightly to be currently trading at $9.06, down 17.26% from Friday's close.

Sims has halved in price in seven months. I expect that negative sentiment will continue to weight on it in the short to medium term given the challenges that it faces moving forward.

View attachment 91528

In the Earning Guidance Report, SIM has also mentioned that future is bleak. So even if there is a good bash today, I reckon many more pain killers are needed as market reads the report more and action accordingly.
DNH

 

[peter2]

I hope SGM's bleak outlook doesn't apply to BSL or S32.