Oh well back below a dollar last time I looked. Last financial year we finished well in the black, easily outperforming the market, but boy have we been hammered in the past 3 weeks, heres to better times ahead including SSM. Of all the recent falls there hasn't been one company with any significant negative announcement,and its all been on fairly low volume. Such is investing! and anyway Friday is usually a bad day
Well at first glance, the results look reasonably good under the circumstances. Revenue up 82%, net profit up 61%, but earnings per share and dividend pretty much unchanged? I don't understand why that is the case.
So far, not much in the way of a change in the share price either. What do you think is holding investors back? The share price is almost half of what it was a year ago so even though the dividend does remain unchanged, it represents better value than a year ago.
Yeah, there hasn't been a single gain that hasn't been wiped out within a couple of days or a couple of weeks.. SSM is incredibly illiquid at the moment, too, which doesn't help at all.
Just want to see what others think but as I said, surely as long as the SSM results at the end of the month are not negative, this will stir investors up and raise the stock price. It looks very undervalued at the moment to me, considering it is a bigger and hopefully a higher turnover company than a year ago, yet valued at less than half the price it was this time last year!
I know we're in a downturn, but 50% down while the market is only about 25% down? And SSM is probably less affected by it than most companies given they have pretty steady contracts, too!
Care not about the mr Market, if the earning is there the price will catch up at some point in time.
In bear market people fly to blue chip for safety and leave smaller company at bargain basement price .. you cant find a stock trade on a PE of 6-10 in a bull market but you find plenty of it in a bear market
Date: 29/8/2008
Author: Michael Smith
Source: The Australian Financial Review --- Page: 60
During the 2008 financial year, the net profit of listed Australian telco,Service Stream, rose 61% to $A18.1 million. CEO, Patrick Flannigan, hasreiterated predictions for EBITDA of $A48 million in the current year. ServiceStream will pay a $A0.075-a-share full-year dividend. The group's sharesclosed at $A0.98 on 28 August 2008
Todays release may stop this being the only thread with an echo
Hope so, but wouldn't bet on it.There isn't much volume in the stock either at the moment. Just 80,000 traded today!
Been doing a bit of research on this stock lately.
I think their operations have scope for more growth.
With the SP this low and an attractive yeild i think that SSM could be a good buy.
Good luck to those holding
Cheers
ROE...you still believe in the potential and future of this company?
I remember you noting you wouldn't sell for less than $1.50 due to the upside...still hold these reservations?
JTLP
I'm still bewildered by the drop in SP though. It seems like the fundamentals of this company are fairly unchanged and it is still profitable. Can you explain how this profit warning has resulted in the value of the company being effectively halved?
In fact, to me it looks like the fundamentals aren't significantly different to when the price was $2! It has expanded a bit and brought on more debt as a result, but apart from that, what is the issue?
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