Credit Suisse out today taking a diim view on both metal prices near term and the debt SFR used to acquire MATSA... dropping the hammer on price target from $6.10 to $2.70... ouch. You all understand the problem and risks with MATSA right... energy costs through the roof in Europe-Spain in addition to fuel and general inflation squeezes margins from costs side. Rising int rates squeezes debt servicing, falling metal prices squeezes revenue... SFR caught in between the closing jaws.
Don't follow the stock well enough well enough for personal opinion (yet) but as someone said above, overpaying at the top of market with debt for a company that stops throwing out free cash has been a common way to go broke (or at least dilute holders with desperate CR's to keep loan covenants from breaching etc). That said, some brokers have a positive view at double current share price. Obviously risk and opportunity are two sides of the same coin depending on one's perspective.
Good luck
SFR General Discussion, page-25
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Last
$8.63 |
Change
0.080(0.94%) |
Mkt cap ! $3.947B | |||
| Open | High | Low | Value | Volume |
| $8.62 | $8.78 | $8.49 | $21.53M | 2.493M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 8 | 59482 | $8.63 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $8.70 | 2784 | 5 |
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| Last trade - 16.10pm 30/08/2024 (20 minute delay) ? |
| SFR (ASX) Chart |