what really is so great about it? what are they paying in dividends? 2% at best annually on all that revenue so not much better than a decent savings account. It's the growth of the company I can't see getting much better.
The job board model took print classifieds online and has been going without much interruption since the late 90's, gradually pulling more and more revenues in the 'print to pixel' migration. This seems to be steadying out now in markets such as the UK where companies still want the exposure that print advertising brings them and yes, companies are now more willing to see value in promoting themselves as great employers through these means - i.e media spend is no longer just a recruitment cost.
The game-changer will be social media. Whether or not seek in Aus get onto that bandwagon or not is one thing, but it is their investments in other markets that could easily be swept aside by a new recruitment platform that leverages the ability of people to refer employment opportunities to their social networks that would worry me. Yes, such as linkedin or even facebook or even something else that leverages them all?
disclaimer: Am I discounting the education and training business too much? Not sure what that contribution is and its growth potential...
but for 2% a year I can see other options with a better chance of further growth - or I would look forward to seeing what seek has in the pipelines for further development of its existing platform.
SEK Price at posting:
$6.31 Sentiment: ST Sell Disclosure: Not Held
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