SXE - Southern Cross Electrical Engineering

[galumay]

I take on board that galumay said it still wasn't expensive when it was priced much higher than this.

See below \/

 

[divs4ever]

@peter2 it all seems a bit odd. Support at 1.58 and 1.50 didn't stop the fall and it looks to me that 1.40 support will be a real tester. Fundamentally I can't find much wrong with it.

unless it has become a bellwether to the wider ( Australian ) economy

 

[galumay]

unless it has become a bellwether to the wider ( Australian ) economy

I think thats reading far too much into the short term volatility in the share price of a micro/small cap business on the ASX! Its still up well over 50% for the last 12 months!

 

[divs4ever]

I think thats reading far too much into the short term volatility in the share price of a micro/small cap business on the ASX! Its still up well over 50% for the last 12 months!

even now , i am very well positioned here

but then i am chasing income ( most of the time ) over capital gains

BUT in theory this is exposed to three major trends going forward , miners changing mine energy sources , data centers ( assuming that is a big trend in Australia ) and in general renewable energy , what if those trends have peaked in the short-term ?

now unless insiders are currently offloading , the increased turn-over suggests somebody is betting big

 

[galumay]

I have no interest in macro and forecasting. Just buy good businesses and hold them, the rest takes care of itself.

I have even less interest in volumes, turn over, price volatility etc, just noise that distracts from the business of investing.

Why even bother speculating on all these unknowables? Makes no sense to me.

 

[divs4ever]

I have no interest in macro and forecasting. Just buy good businesses and hold them, the rest takes care of itself.

I have even less interest in volumes, turn over, price volatility etc, just noise that distracts from the business of investing.

Why even bother speculating on all these unknowables? Makes no sense to me.

well a serious price drop MIGHT encourage me to increase the holding , but SXE isn't my only holding , so maybe it is a signal to watch other stocks ( in mining services and other industrial , and resource stocks )

good businesses are still affected by the general economy but they normally handle the changes better

 

[galumay]

good businesses are still affected by the general economy but they normally handle the changes better

Agreed, thats why we hunt for good businesses! My point is the future state of the general economy is unknowable and I cant control it, so best ignored IMO.

 

[galumay]

Great contracts announcement this morning. (reward for my conviction as per my posts above!)

 

[divs4ever]

Great contracts announcement this morning. (reward for my conviction as per my posts above!)


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yes , SXE may turn out to be a great winner for me in this digitization/AI fad

( although some of my other computer services related stocks are not struggling either )

hysterically i bought into SXE because they were converting mine power plants to 'cleaner energy '

 

[galumay]

Another lazy $100m. If this were PME it would double on news like this!!

 

[divs4ever]

Another lazy $100m. If this were PME it would double on news like this!!

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it seems so , BUT SXE contracts are ( relatively ) capital intensive , you know parts labour , transport , etc etc compared to the PME ones where most of the costs will be lawyers drawing up the contracts and first class air-travel/accommodation to get hands shaken and ink on paper

but both shares sit side by side in my 'bottom-drawer ' , and one is almost ten times the dollar value of the other ( as crazy as the comparative metrics seem )

it is certainly an interesting time to be investing

 

[peter2]

Selected for the Feb25 monthly comp. Due to report Feb 19th and I hope for a +20% spike on the news.

SXE share price has been very weak in spite of the two 100M+ project awards. I'm unaware of any reasons for this weakness. If the company is in great shape then price can go back to the prior highs near 1.90 (currently 1.50). The Feb report will be very interesting.

 

[divs4ever]

Selected for the Feb25 monthly comp. Due to report Feb 19th and I hope for a +20% spike on the news.

SXE share price has been very weak in spite of the two 100M+ project awards. I'm unaware of any reasons for this weakness. If the company is in great shape then price can go back to the prior highs near 1.90 (currently 1.50). The Feb report will be very interesting.

speculation ONLY

given the recent deflation of US/West AI aspirations , i think the market is trying to factor in reduced data centre contracts

( i hold SXE at a theoretical average of 50.5 cents )

but good luck in the comp.

if you are correct my portfolio looks a little better

 

[galumay]

Very strong result for SXE, H1 2025, only red flag is the ridiculous use of bull**** earnings in their reporting, totally unnecessary for such a good business with excellent metrics. Nice increase in the divvy too!

Revenue, earnings and cash flow all very positive. Cash flow particularly strong. A test of their capital allocation skills coming!

 

[divs4ever]

Very strong result for SXE, H1 2025, only red flag is the ridiculous use of bull**** earnings in their reporting, totally unnecessary for such a good business with excellent metrics. Nice increase in the divvy too!

Revenue, earnings and cash flow all very positive. Cash flow particularly strong. A test of their capital allocation skills coming!

View attachment 193541

well if they can persistently pay 2.5 cents a share every six months , i am finally getting a decent return on my 50 (ish ) cent stock , not quite free-carried but halved the holding April 2023 ( to free up some cash )