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SSM - Service Stream

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I have to say i prefer a rights issue over a placement, as it prevents people selling down and then taking up the entitlement with the money from what they have sold (if that makes sense).

The other thing is that being fully underwritten with no take-up Austock would end up with 30% of the co. So is it possible Austock will be looking at purchasing a lot of rights on market then going for a take-over? Pure speculation on my part, but may be possible...

The rights start trading today and finish at close of market on the 6th of Oct.

Rights code is SSMR for those interested. Wonder what they will open at...
 
prawn_86 said:
I have to say i prefer a rights issue over a placement, as it prevents people selling down and then taking up the entitlement with the money from what they have sold (if that makes sense).

The other thing is that being fully underwritten with no take-up Austock would end up with 30% of the co. So is it possible Austock will be looking at purchasing a lot of rights on market then going for a take-over? Pure speculation on my part, but may be possible...

The rights start trading today and finish at close of market on the 6th of Oct.

Rights code is SSMR for those interested. Wonder what they will open at...
Click to expand...

Austock is a securities company so unlikely they will take over an engineering firm...

The depth for the rights are pretty thin at the moment. Bid $0.1, Ask $0.18, Volume trade = 0.
 
with the rights issue is there a formula that the price of the shares drops and a calculation for the price of the rights

does the charts for ssm all change by a certain percentage like they did for rio
 
Right, I thought I vaguely understood the mechanisms of the rights issue but now I'll come clean. The whole thing is confusing me. I understand that a rights issue essentially dilutes the value of existing shares by increasing the total number of shares issued and gives existing holders the right to buy into those additional shares (correct me if I'm wrong)...

But what I don't understand is the new SSMR shares. Are they the actual additional shares? If so, why are they so cheap (currently at 8 cents) when SSM is still worth 50 cents, why have they dropped 46% in the last 5 days, and why does my porfolio say that I now own them, when I haven't agreed to participate in the rights issue nor have I traded them? Also, what happens if I don't choose to participate in the rights issue? Do I then just lose the value of the stock through dilution and that is that?

I think I need (if someone is prepared to help) a proper explanation of the rights issue in the context of SSM specifically, rather than a theoretical explanation of what one is (I read the investopedia article, but it hasn't actually aided my understanding of what is going on with SSM.
 
diliff said:
Right, I thought I vaguely understood the mechanisms of the rights issue but now I'll come clean. The whole thing is confusing me. I understand that a rights issue essentially dilutes the value of existing shares by increasing the total number of shares issued and gives existing holders the right to buy into those additional shares (correct me if I'm wrong)...

But what I don't understand is the new SSMR shares. Are they the actual additional shares? If so, why are they so cheap (currently at 8 cents) when SSM is still worth 50 cents, why have they dropped 46% in the last 5 days, and why does my porfolio say that I now own them, when I haven't agreed to participate in the rights issue nor have I traded them? Also, what happens if I don't choose to participate in the rights issue? Do I then just lose the value of the stock through dilution and that is that?

I think I need (if someone is prepared to help) a proper explanation of the rights issue in the context of SSM specifically, rather than a theoretical explanation of what one is (I read the investopedia article, but it hasn't actually aided my understanding of what is going on with SSM.
Click to expand...

You are only diluted if you are not participating in the right issues.

SSMR give you the option to sell your rights, so if you dont want to participate or dont have the cash, you sell those rights to someone else to purchase additional shares at 38 cents.
it's not the actual shares it the right to buy more shares at 38 cents

if you intend not to participate SELL it you get money for nothing.

Look at your CHESS holding, you should have a symbol called SSMR and it tell you how many shares you entitle to right issues...you can sell all that at whatever the market price and cash in
if you short of cash...you still retain full share ownership in ssm

SSM doing a good job with this right issue, not like some other company
where they dont care about minor share holders...

hope that help.
 
SSM have seen a bit of a fall in recent weeks since the rights issue was announced. As at 11 September SSM stated that based on the closing price that day (56.5c) the theoretical ex-rights price was ~51c.

Given the SP is currently sitting at 47c, I'm thinking the price come October 22nd will be around 44c, still a healthy premium to the 38cps paid.

Anyone care to comment on wether they took up the rights offer? I personally took up the full amount.
 
Jay,

I took up my full entitlement as well. The current market price should already include the dilution impact of the rights issue, so shouldn't drop by a further 10%. Having said that, there will me some profit takers willing to sell their shares bought at 38 cents when these are finally issued so price could slump for a while.
 
Service stream had been neglected here and on the asx;), hitting new lows recently. My view is that this is the impact of a lack of progress on the national broadband network which SSM would have been well positioned for. Recent announcements of renewed and expanded contracts with telstra are positive. Has anyone done some analysis of this stock recently. Are there any holders on this forum?
 
i'm expecting the NBN deal the govt has struck with TLS will now give SSM the significant boost that ive been waiting a couple of weeks for. The SP is currently close to its recent lows, tomorrow will be very interesting.
 
Is anyone following this stock now? The sp increased by 14.3% today. The price recently spiked on two occasions on speculation of the NBN. Now it is game on, and SSM is in a prime position to expand its contracts with telstra.
SSM is the main provider of field service to the telco sector from construction, installs and maintenence. Im expecting this stock to find a higher base than what it sits on to date, and in the medium term future contracts should provide some surges in sp. :D dyor
 
I hold and am waiting for them to start paying a dividend again. Am still slightly down on my investment but happy with it overall, although should have implemented a trailling stop when i first bought
 
prawn_86 said:
I hold and am waiting for them to start paying a dividend again. Am still slightly down on my investment but happy with it overall, although should have implemented a trailling stop when i first bought
Click to expand...

For the last 3 months they have been trading between 25 - 30c, and now in the last 2 trading days have increased to 39c. Anyone have any ideas as to what is going on?
 
prawn_86 said:
For the last 3 months they have been trading between 25 - 30c, and now in the last 2 trading days have increased to 39c. Anyone have any ideas as to what is going on?
Click to expand...

Labor wins .. NBN imminent :D

SSM has an arm in Fibre and we expect it to grab a bit of work out of NBN

plus smart meters and stuff could be get a boost once NBN is in place.... and SSM has a fat hand in
smart meters
 
ROE said:
Labor wins .. NBN imminent :D

SSM has an arm in Fibre and we expect it to grab a bit of work out of NBN

plus smart meters and stuff could be get a boost once NBN is in place.... and SSM has a fat hand in
smart meters
Click to expand...

It just seem strange that a 30% rise can be put down to labour winning. And its not as though it rose straght away, it took a week for the market to realise.

It seems as though somehting else is going on imo
 
prawn_86 said:
It just seem strange that a 30% rise can be put down to labour winning. And its not as though it rose straght away, it took a week for the market to realise.

It seems as though somehting else is going on imo
Click to expand...

Take a bit of time for the market to digest what this business has :)
some people wouldn't know about SSM at all

so a labor win and NBN deal with the independent probably make them go out and look for company that has this exposure and SSM probably some where on the shopping then they poke and look and they see

Thorney increase their stake recently and that got to be a a vote of confident.

Thorney doesnt invest until he talk to the management and want to know what in the pipe line :D

and when he double up you know what's coming and I double up pretty much the day I see Thorney double up :)
 
Down 4% today on the back on a 'we know nothing' response to a speeding ticket.

Healthy little pullback imo. Will be interesting to see how things play out from here.
 
Broke through resistance today on good volume. Trend looks good with next strong resistance at 50c IMO.

Fundamentally I have an intrinsic value of just over 50c so thats my current target, but that value doesn't really include any NBN upside. I wrote a blog on this company a few weeks back and am happy to see the shareprice appreciating the way it is. Still quite a way to go IMO.

Always DYOR and seek professional advice.
 
Nothing on this for the last few days. Broke through Jiggys 50c resistance and also news out regarding installing more smart meters in VIC and renewed WA contracts.

New Chairman et al also put in place so looks to be moving forward again. :2twocents
 

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