SIV - SIV Capital
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Re: Why did Silver Chef Ltd SIV crash >15% in the closing hour?
Dunno. There was a market update this afternon - did you read that?
Dunno. There was a market update this afternon - did you read that?
Re: Why did Silver Chef Ltd SIV crash >15% in the closing hour?
I did. Strange thing is that I find the market announcement to be positive.
I did. Strange thing is that I find the market announcement to be positive.
skc
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Re: Why did Silver Chef Ltd SIV crash >15% in the closing hour?
Here's Macquarie's quick take on SIV's announcement.
Here's Macquarie's quick take on SIV's announcement.
Re: Why did Silver Chef Ltd SIV crash >15% in the closing hour?
I guess the expectations of analyst to be on the high side. Easier to miss high expectations.
http://www.asx.com.au/asxpdf/20160721/pdf/438q8k01429tgm.pdf
The highlights do not look bad. Looks good to me. Restricted by pdf from copying and pasting here
I guess the expectations of analyst to be on the high side. Easier to miss high expectations.
http://www.asx.com.au/asxpdf/20160721/pdf/438q8k01429tgm.pdf
The highlights do not look bad. Looks good to me. Restricted by pdf from copying and pasting here
greggles
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Yes, that seems to be the reason for the share price decline as it happened on the same day as the announcement, 26 February.
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The GoGetta business was a huge drag on SIV. Now that management realise that they can't manage two businesses at the same time, there's hope that they refocus on the business they built up successfully. The restucture will take some time as they've still to exit some GoGetta contracts.
I've put this chart in my reversal watch list.
I've put this chart in my reversal watch list.
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I'm not convinced they can recover quickly. I was reading their latest update this morning and noticed that they are also in trouble with the ASIC for potential lending issues. Presumably that will result in either a fine and/or legal fees. Combine that with what appears to be a hidden downgrade in their core business and that the runoff is facing higher than expected arrears.... Well you get where I'm going.
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@The Triangle you were correct in that SIV wouldn't recover quickly. They're still struggling to recover assets and capital from the GoGetta business. What a mess. Are they at the bottom now?
From $12 down to $2. Management qualify for the $2 reject shop. Just don't ask them to manage it.
From $12 down to $2. Management qualify for the $2 reject shop. Just don't ask them to manage it.
greggles
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SIV is looking like it may have bottomed out at around $1.75 in early September, unless there is more bad news to come after this morning's FY18 financial results announcement which reported a statutory net loss after tax of $48.8 million.
The share price has barely moved this morning and is currently down 1.4% to $2.06. Has all the selling down finished?
The share price has barely moved this morning and is currently down 1.4% to $2.06. Has all the selling down finished?
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Could be due for a short-term bounce perhaps helped by a Santa rally ?
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Looks like a small rally is in play here with Silver Chef Ltd (SIV)…
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On November 27th, 2019, Silver Chef Limited changed its name to SIV Capital Limited.
Dona Ferentes
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One company drastically affected by lockdown
I haven't looked at SIV but I'd imagine they're struggling
I haven't looked at SIV but I'd imagine they're struggling
Dona Ferentes
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SIV Capital Limited (SIV, formerly Silver Chef Limited) is focused on long term rentals of commercial equipment to small-to-medium enterprise in the hospitality space. The company has a significant presence in Australia and growing exposure to the New Zealand and North American markets.
- an unholy mess. Renting out kitchens and cafe fittings; so 2019.
- an unholy mess. Renting out kitchens and cafe fittings; so 2019.
Dona Ferentes
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.... and I am surprised. Maybe lock-down has led to fit-out heaven, because SIV is hanging in. I thought it was a gonner, breach of covenants, even their debentures were on the nose, but somehow the restructure, sale of hospitality business, has kept it afloat.
- last year's AGM
Now having sold Hospitality Business, now looking at a Return of Capital (of some form) (after which the shell will be sold??)
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Quite surprised SIV managed to stay listed after all this mess. Market cap is now ~$13 million with no significant debt.
"Based on budgeted remediation and related costs which are expected to be paid by April /May 2021, the Group will have approximately $11 million of cash on hand at 30 June 2021" - Ok intersting they will be roughly valued at their cash backing. But let's consider the SIV track record of budgets and forecasts...
"Our expectation for gross cash on hand at 30 June 2021 to be $18 million (pre remediation and related costs) which is around $4 million lower than the $22 million we advised in the Annual Report. This has in part been caused by new rental contracts each month (total $1.7 million actual to date and forecast), re-estimating our own legal costs in respect to the ASIC matter and taking a more conservative view of other costs/contingencies and to a lesser extent revenue items for the balance of the year."
Being 4 million off within a few weeks/months is pretty poor. SIV could be an interesting buy at 30 cents - but they really need to show that they have a handle on things. Also, with the ASIC still involved I would only take a punt at around 25+ cents.
On a site note - even if SIV never had any issues - I would think this covid mess would have absolutely decimated them anyways.
"Based on budgeted remediation and related costs which are expected to be paid by April /May 2021, the Group will have approximately $11 million of cash on hand at 30 June 2021" - Ok intersting they will be roughly valued at their cash backing. But let's consider the SIV track record of budgets and forecasts...
"Our expectation for gross cash on hand at 30 June 2021 to be $18 million (pre remediation and related costs) which is around $4 million lower than the $22 million we advised in the Annual Report. This has in part been caused by new rental contracts each month (total $1.7 million actual to date and forecast), re-estimating our own legal costs in respect to the ASIC matter and taking a more conservative view of other costs/contingencies and to a lesser extent revenue items for the balance of the year."
Being 4 million off within a few weeks/months is pretty poor. SIV could be an interesting buy at 30 cents - but they really need to show that they have a handle on things. Also, with the ASIC still involved I would only take a punt at around 25+ cents.
On a site note - even if SIV never had any issues - I would think this covid mess would have absolutely decimated them anyways.
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Had another look at SIV this week after it strangely fell from 33/34 cents to 29/30 cents. Volume picked up making it possible to get shares at 30 cents without pushing the price up to 35/36.
Cash balance (13.5m) is greater than market cap (12m).
Enterprise value is negative
Current business (err - what's left of it) is cash-flow positive and forecast to generate ~ $3 million per year after costs
Potential for an insurance payout
Potential for major tax/franking credits to be used.
Still have to deal with the ASIC (Good to see ASIC spending their time going after the little guys....) which is a huge risk.
Still have to assume they will maintain their current business and have no more surprises.
Although thinly traded - I'm in and will stick it out for a while. Essentially the shell of SIV is worth nothing in the eyes of the market. Someone will come up with a way to use the tax assets and I believe that will lead to capital gains by this time next year. I could see this going lower by next quarter as cash should drop a little more with more legal costs.
Cash balance (13.5m) is greater than market cap (12m).
Enterprise value is negative
Current business (err - what's left of it) is cash-flow positive and forecast to generate ~ $3 million per year after costs
Potential for an insurance payout
Potential for major tax/franking credits to be used.
Still have to deal with the ASIC (Good to see ASIC spending their time going after the little guys....) which is a huge risk.
Still have to assume they will maintain their current business and have no more surprises.
Although thinly traded - I'm in and will stick it out for a while. Essentially the shell of SIV is worth nothing in the eyes of the market. Someone will come up with a way to use the tax assets and I believe that will lead to capital gains by this time next year. I could see this going lower by next quarter as cash should drop a little more with more legal costs.
