Guys be careful what you wish. On page 3 of the half year report to Dec 31 there is an expense item: due diligence costs on potential acquisitions $1m.
So behind the scenes SSM is on the hunt for acquisitions. But if shareholders place excessive pressure on management to achieve 'growth at any cost', share holders face two potential risks: *Over paying for a sub-par acquisition *Dilutionary capital raising to pay for the acquisition
Again from the half year financials: the SSM is still paying down the borrowings from the Comdain acquisition.
Now the Comdain acquisition looks as though it was an intelligent acquistion. Shareholders just need to keep management focus on intelligent future acquisitions, not acquisitions just for 'growth' sake.
Could share price weakness also because of this concern I have.
SSM Price at posting:
86.0¢ Sentiment: None Disclosure: Not Held
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