We seem to be in an endless cycle of management issuing a range guidance, share price goes nowhere for 12 mnths, they deliver the upper end of guidance & the share price falls.
SME are so out of favour at the moment even good solid businesses are being ignored. Seems the only way to get re-rated is to deliver high top line growth & significantly increase the size of the business. Something that SVR is never going to be able to do with the markets it operates in & the level of capital required. Aside from a takeover SVR is not going to deliver much in the way of capital appreciation hence the focus on dividends IMO by management. Any bolt on acquisitions aren't going to move the dial much in the short to medium term.
Seems there are a lot of SME financial services companies moving into adjacent segments like commercial lending, asset financing, novated leases to try & diversify & grow.
At a gross yield of 12-13%+ SVR is great for income but it's not going to knock you're hat off.
SVR Price at posting:
$1.10 Sentiment: Buy Disclosure: Held
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