Ann: Service Stream - Notice of Shortfall from Ri, page-8

re: Ann: Service Stream - Notice of Shortfall... Might be stupid in your opinion but if you look at my sentiment for stocks I have posted on with SELL you should see that the share price has gone south not north.

Stocks I post on KFE, FXR, MAH and BML. I have either SELL or BUY sentiments.

You can be the judge on whether my opinion is stupid based on the share prices over the last 6 months.

31 Oct prices

KFE 8.5 cents
FXR 1.6 cents
MAH 15 cents
BML 0.3 cents

2 May prices

KFE 5.7 cents
FXR 1.5 cents
MAH 11 cents (note NTA is 32 cents)
BML 0.9 cents

In my opinion MAH will re-rate when the Institutions decide to pull the trigger. For now they have lost trust in MAH. MAH currently in re-building phase to regain confidence and trust of market. Anyhow, back to SSM.

What is SSM's NTA? I will tell you.

It is 13 cents with half of that accounted for in Accrued revenue and it trades at 20 cents. All this from a company with an EBITDA forecast for FY14 of $20 million. Based on first 6 months Accounts NPAT will come in at around $7-$8 million.

So this is a great company or a great value play? Annualised turnover of approximately $430 million, Net profit of around $8 million. A massive 2% NPAT margin!!!!!!!!!!! What value.

This is what SSM had to say in it's first half presentation

"Board confirms guidance of approximately $20.0m EBITDA (subject to the timing of customer demand in H2), having delivered $7.5m in the first half."

You gotta love the disclaimer!

My sentiment is SELL and never invest in a company that has such low NPAT margins. This company in my opinion is only good for executives, board members and staff. Paid very very well for delivering jack for shareholders.