Agreed SteveSage. They feel comfortable forecasting international sales, which are growing extremely fast and they have minimal experience in but no confidence to forecast domestic sales, which are much more mature and they have significant experience in? It doesn't make sense.
Also it should clearly have been marked as price sensitive.
Having said that it's a very solid update. I'd ignore the headline numbers (particularly +38.3% revenue growth vs pcp) given the collapse of demand in Mar-Apr last year, but at the current run rate they're on track for 10-15% growth for Jan-Jun, which is a good number. They flagged both a focus on international markets and potential acquisitions - they'll need one or both of these to take off in order to continue their next leg of growth once domestic housing construction slows.
I have two major frustrations with this company: - poor insider ownership, which I've never seen them acknowledge or address - no metrics in regards to product segments. They give commentary on each (and did again today) but it's completely useless you can understand the relative size and performance of each. Given they don't own all the brands they're selling their lack of transparency means you can't appropriately risk weight the different drivers of revenue.
But I probably sound overly negative - they are a significant portion of my portfolio and I see no reason to sell for the time being.
SHM Price at posting:
99.0¢ Sentiment: Hold Disclosure: Held
