SSM - Service Stream

[pointr]

Thanks for your TA view 'nomore4s'. Next week if the communications minister is to be believed (When Kevin707 comes home) an announcement will be made on the broadband network. So hopefully there will be some fundamentals to support your technical view.

 

[nomore4s]

Well, it broke through 40c quicker then I thought it would. Up over 10% atm, hope it can hold on to most of the gains and close above 40c.

Would like to see some consolidation above 40c now before moving higher.

 

[nomore4s]

lol well so much for so consolidation above 40c before moving higher.

The internet was down in the NT for most of the morning and I got a bit of a shock when I finally logged and saw SSM @ 60c - has come off a bit now but hopefully it can hold above 50c now.

Jump might be due to an annoucement on McCourt Dando.

EDIT: Sellers moving in now back down to 53c

 

[craigj]

what a disgrace!

no announcements for ages - 3 months ago with positive contract wins

then today
contracts being pushed back
profit reduction
ceo going
no dividend

how can a company be quiet like this for 3 months and then reveal all this in one hit ?

 

[ajalee]

Have been watching this for awhile.. It seems we have been kept in the dark a little
Still, seems like there is very good upside especially at 30c entry point.. There P/e of 3.6 seems to be one of the lowest around at the moment for a quality company

 

[urgalzmine]

Have been watching this for awhile.. It seems we have been kept in the dark a little
Still, seems like there is very good upside especially at 30c entry point.. There P/e of 3.6 seems to be one of the lowest around at the moment for a quality company

Umm, you may want to look how much cash they have compared to debt

Mr Market has punished stock with large debt that may not be able to be serviced

 

[prawn_86]

I picked these guys up a while ago when the CEO resigned and the price dropped. I got them for 31c.

Their results came out last night. Revenue up, NPAT down (due to McCourt Dando). Still had EPS of 6c per share, which puts PE at 6.5.

If you look at it from a project perspective, buying a share now would have a paypack period of 6 years based on no growth assumption of current cash flows. Or if they can get EPS back to where it was last yr its a 4 year payback period. Not bad...

 

[prawn_86]

Up about 15% today. market seemed to miss their results, but now liked their presentation.

Good to see they have some big name companies as clients. All seems to be on track. Hoping for a div again next yr

 

[Jay-684]

Up about 15% today. market seemed to miss their results, but now liked their presentation.

Good to see they have some big name companies as clients. All seems to be on track. Hoping for a div again next yr

Part of the rise could also be due to David Hazelhurst aka The Speculator listing it as a buy in his column in Money (which I received in the mail yesterday).

Alot of the stocks he selects (HGO, ASL, BCI etc) all jump 5%+ the day the magazine comes out

 

[prawn_86]

Part of the rise could also be due to David Hazelhurst aka The Speculator listing it as a buy in his column in Money (which I received in the mail yesterday).

Ahh ok i wasn't aware of that. Is the article available online? Or if not can you provide a little summary?

Thanks

Prawn

 

[prawn_86]

Up nicely again today.

From a technical perspective, 50c represents long term resistance. If it can break and hold above that convincingly then there is litte resistance up to around 70c.

Im at 'work' so cant post a chart

 

[Jay-684]

Ahh ok i wasn't aware of that. Is the article available online? Or if not can you provide a little summary?

Thanks

Prawn

Not available online, but I have the mag in my car. Very promising article - I'll put a short summary up tomorrow.

I dont own currently but am thinking of possibly entering if it dips back down to 45-47c over the coming days (also have a small buy order in at 49c just incase it rallys from here!)

 

[prawn_86]

Any luck on the summary Jay?

Today is looking very promising on an overall down day. If it can hold above 50c it will be a good sign imo.

 

[Jay-684]

Sorry Prawn, its still sitting in my car! Will try and remember to bring it in to work tomorrow.

Picked up a parcel yesterday at 0.49 and this morning at 0.47. Only a small holding currently but will likely buy more on any weakness if it dips below 50c again. Always good to make a gain of 10%+ on day one though!

Would be interested to see some technical analysis on this stock, from my newb perspective resistance seemed to have been around the 50c mark, next resistance at 70c...

DYOR

 

[Jay-684]

No announcement, but again up 6%+ today thus far on reasonable volume (early days yet - 10:33am)

Buyers greatly outweighing sellers (5.3m vs 700k).

Would still be very interested to hear thoughts on next resistance from a T/A point of view - I'm still thinking 70c

Prawn - mate I forgot the mag again.... if you pass a newsagent in the meantime, its about 10 pages from the back of the latest money magazine!

 

[nomore4s]

No announcement, but again up 6%+ today thus far on reasonable volume (early days yet - 10:33am)

Buyers greatly outweighing sellers (5.3m vs 700k).

Would still be very interested to hear thoughts on next resistance from a T/A point of view - I'm still thinking 70c

Prawn - mate I forgot the mag again.... if you pass a newsagent in the meantime, its about 10 pages from the back of the latest money magazine!

There is actually some resistance @ 60c and then probably the next major resistance is around 80c.

I would like to see some consolidation around 60c - either above or below before moving any higher but we will have to wait and see how it pans out. Unfortunatly I can't post a chart atm.

 

[prawn_86]

I would like to see some consolidation around 60c - either above or below before moving any higher but we will have to wait and see how it pans out. Unfortunatly I can't post a chart atm.

Preferabbly above for me, then i can take my original capital off with 100% profit and free carry the rest

In 'theory' if they can lift their EPS even just to 8c next year 80c would put them on a PE of 10, which is around the mark if you ask me. So on current earning 60c would be PE of 10.

 

[pointr]

So today SSM announced a renounceable rights issue on a 11 for every 25 you hold basis, priced at $0.38 a theoretical 25% discount to the companies price taking the dilution created by this issue into account. The timetable was pretty brisk and the proceeds were going to be used to retire debt, there was also a mention of 'new opportunities', but nothing specific. Any views on this offer out there in ASF land.

 

[prawn_86]

Still undecided myself on the offer. Have been trying to get my head around it today. It is quite a large dilution, but paying down debt is seen as a good thing these days.

Not sure if i will take up my offer or just sell my rights...

 

[oldblue]

We seem to be seeing a spate of issues for unspecified "new opportunities" and to reduce borrowings meanwhile.

It's pretty clear that most of these are companies taking the opportunity to raise funds while market conditions are favourable, striking while the iron is hot, so to speak!