SMX - SMS Management and Technology

[porkpie324]

anyone know anything about smx apart from whats in the a/report, i have been holding smx since july 2003 bought on double bottom, bought some more may last year, they just going up and up (not complaining though), up a massive .38c today on double vol. porkpie

 

[porkpie324]

bought some more using CFD this morning, SP has been weak after an but seems to have found support around 3.30. porkpie

 

[rubles]

Hi Porkpie

I used to love trading this share - although I haven't traded it for about 18mths.

Not sure what they do, but it used to be really predictable to trade.

Cheers
rubles

 

[porkpie324]

yes SMX has been an excellent trader, just holding 3000 shares now and this mornings cfd pos,although will watch carefully in case todays rise is dead cat bounce. porkpie

 

[condog]

I hold SMX and anyone of you guys who had it lately would be grinning from ear to ear like I am...... I sold half my holdings this week thought it was too dear.

 

[McCoy Pauley]

SMS Management and Technology Ltd (ASX:SMX) has gone off like a frog in a sock recently. SMX is an ICT company with offices in Australia, the United Kingdom and Singapore. It provides services through a number of different units, including "SMS Consulting", "SMS Technology Solutions", "SMS Enterprise Solutions", "SMS Defence Solutions" and "M & T Resources".

This is a chart that will make holders of the stock and those who don't hold (like myself) wince at the missed opportunity:

Been a real "market darling" of late with some excellent results posted last week.

 

[clinta44]

I only have one regret about this stock - not buying enough of them when I had the chance... I'm still awaiting the day they are reasonably priced so i can load up again.

 

[oldblue]

I only have one regret about this stock - not buying enough of them when I had the chance... I'm still awaiting the day they are reasonably priced so i can load up again.

They're around a two year low at present. What do you regard as "reasonably priced" - and why?

 

[clinta44]

They're around a two year low at present. What do you regard as "reasonably priced" - and why?

From my calculations - I think there worth about $5 a share also the value has hovered around $4.80 - $5.80 over the last four years.

my current small holding was purchased at $3.60 so I am reluctant to buy a significant amount until they reach a simluar price.

 

[McCoy Pauley]

Looks like SMX is positioning itself to potentially break above the downward channel that's developed over the last six months.

 

[Nutmeg]

Half Year Results - SMS Management and Technology

SMX reports its half year results tomorrow. I am not expecting that they'll blow my socks off. DTL which is a superior company, although providing a slightly different suite of services, was disappointing, notwithstanding growing top line growth. I expect that SMX will be a cut below that. Any views?

 

[clinta44]

Re: Half Year Results - SMS Management and Technology

SMX reports its half year results tomorrow. I am not expecting that they'll blow my socks off. DTL which is a superior company, although providing a slightly different suite of services, was disappointing, notwithstanding growing top line growth. I expect that SMX will be a cut below that. Any views?

I actually think that smx is a superior company. Dtl do have a superior reputation. I'm not expecting a fantastic double digit profit increase but I think tomorrow will be a decent report.

Let's not forget dws they released a great result in the same sector. So it's hard to base other companies results based on poor performance of a market leader.

Just my thoughts

 

[skc]

Re: Half Year Results - SMS Management and Technology

I actually think that smx is a superior company. Dtl do have a superior reputation. I'm not expecting a fantastic double digit profit increase but I think tomorrow will be a decent report.

Let's not forget dws they released a great result in the same sector. So it's hard to base other companies results based on poor performance of a market leader.

Just my thoughts

Or OKN which reported a slightly negative result. The sector is not showing consistent trend at the moment.

 

[Nutmeg]

Re: Half Year Results - SMS Management and Technology

I actually think that smx is a superior company. Dtl do have a superior reputation. I'm not expecting a fantastic double digit profit increase but I think tomorrow will be a decent report.

Let's not forget dws they released a great result in the same sector. So it's hard to base other companies results based on poor performance of a market leader.

Just my thoughts

May you be proven right rather than me.

 

[Nutmeg]

Half year results:

Revenue $169.5m up 16.1% on pcp

EBITDA1 $ 21.8m up 3.8% on pcp

Net Profit After Tax $ 15.2m unchanged

Interim Dividend per Share (fully franked) 13.5 cents unchanged

 

[Nutmeg]

Re: Half Year Results - SMS Management and Technology

I actually think that smx is a superior company. Dtl do have a superior reputation. I'm not expecting a fantastic double digit profit increase but I think tomorrow will be a decent report.

Let's not forget dws they released a great result in the same sector. So it's hard to base other companies results based on poor performance of a market leader.

Just my thoughts

You are correct, athough only just. SMX's result was better than DTL's inasmuch as SMX's NPAT was unchanged and DTL's declined. Interestingly, IRE, another great company in the tech space, albeit in financial services, showed an 18% dip in full year NPAT.

 

[craft]

Re: Half Year Results - SMS Management and Technology

You are correct, athough only just. SMX's result was better than DTL's inasmuch as SMX's NPAT was unchanged and DTL's declined. Interestingly, IRE, another great company in the tech space, albeit in financial services, showed an 18% dip in full year NPAT.

I have had a bit of a look at both SMX and DTL.

Both companies investing ahead of the growth curve and have seen their utilisation rates fall as some customers have delayed their investment projects. This was flagged by DTL in an earlier announcement.

Both companies have had good top line growth, should stand them in good stead if/when projects come back on line.

With delays in DTL’s higher margin business they become somewhat more exposed if they were to lose the government contracts that are up for renewal.

SMX’s flat result given the project delays and softness in certain markets is a reasonable effort. I also see DTL’s result as reasonable. At the headline level it is a fall of 9.5% but that is against a phenomenal PCP. If you compare this figure against two periods ago, DTL is up by 51.5% and on trend whilst SMX is up by 11.5%

Since listing DTL’s linear regression trend line has shown an annual compound increase in of 19.4%. The comparable increase for SMX is 9.4%. DTL is currently on a grossed up yield of 12.5% and SMX on 8.5%.

IMO both companies are good long term prospects but both have short term headwinds.
I own shares in DTL.

 

[Nutmeg]

Re: Half Year Results - SMS Management and Technology

I have had a bit of a look at both SMX and DTL.

Both companies investing ahead of the growth curve and have seen their utilisation rates fall as some customers have delayed their investment projects. This was flagged by DTL in an earlier announcement.

Both companies have had good top line growth, should stand them in good stead if/when projects come back on line.

With delays in DTL’s higher margin business they become somewhat more exposed if they were to lose the government contracts that are up for renewal.

SMX’s flat result given the project delays and softness in certain markets is a reasonable effort. I also see DTL’s result as reasonable. At the headline level it is a fall of 9.5% but that is against a phenomenal PCP. If you compare this figure against two periods ago, DTL is up by 51.5% and on trend whilst SMX is up by 11.5%

Since listing DTL’s linear regression trend line has shown an annual compound increase in of 19.4%. The comparable increase for SMX is 9.4%. DTL is currently on a grossed up yield of 12.5% and SMX on 8.5%.

IMO both companies are good long teree reerm prospects but both have short term headwinds.
I own shares in DTL.

I agree with your assessment of the future prospects of these companies. Hopefully, DTL will be sold down so as to be more compelling value than it is at present.

 

[Nutmeg]

I liked the reference in SMX's half year report that they were taking market share. I didn't see a similar reference in DTL's report.

 

[clinta44]

Re: Half Year Results - SMS Management and Technology

I agree with your assessment of the future prospects of these companies. Hopefully, DTL will be sold down so as to be more compelling value than it is at present.

The only thing that has me rattled about DTL is the 10 for 1 share split... I just don't understand the reasoning behind that move. While the company said "the split is intended to benefit shareholders by increasing the liquidity of the company's shares and increasing the affordability to retail investors" this got me thinking something was a foot… I assume that retail investors would look for value rather than affordability. Anyway… that put a dampener on my outlook of DTL.

As for SMX… The biggest concern I have with them is that they are currently holding onto there staff while project uptake has been slow, it seems like they haven’t been able to redeploy some of there billable staff. The only question that is in the back of my mind with this one is… how long can this continue…