Ann: Lend Lease awarded NBN contract for SA/NT , page-3

re: Ann: LLC: Lend Lease awarded NBN contract... Sequoia - You appear to be making the ridiculous assumption that SSM have no other ongoing revenue. While I can't detail them all here, SSM have a large number of other ongoing contracts. My understanding is that most of the contracts you have specified are additional, and apart from the major Telstra contract loss announced a couple of months ago there have been no material losses. That is why the revenue forecast for 11/12 (issued at the time of the AGM, I think) is for similar revenue to 10/11, despite the Telstra loss. That forecast excludes the new NBN contract, of course.

SSM continue to be substantially undervalued. I have seen many comments on this issue over the last year or so, but none of the explanations offered have, to my mind, been satisfactory - not that I have any better idea. I remain stumped. Apart from a couple of very substantial contract losses about three years back, SSM has had few major problems with their business, growing revenue and diversifying their business almost continuously for a number of years, and yet for many years it the company has been valued at a P/E of less than 10. I am sure that dividend payments will resume in 2012, and I am hoping that this might finally prompt the market to see reason and value SSM appropriately.