SSM was really my speculative stocks I didn't want to stay in it for a long haul, it does have fundamentals but a weak one and its business model I don't like it that much.
Having said that I do invest in these companies if I find the price is attractive enough and it could deliver decent capital gain.
My capital gain is delivered and So I no longer need to be in it.
This is the reason I got out of SSM and the timing was just pure luck but I sometimes get a lot of luck when I based decision on facts and information.
SSM business manage a lot of sub-contractors and most of their contracts are fixed price so managing large number of contractors and fixed price contracts, a lot of things can go wrong here...
With NBN I sort of see there will be blow out of cost and generate skill shortage .. I know large IT project fairly well, I involve in a lot of these and based on the information I gather I don't have confident this project run on time and on budgets and therefore it could affect SSM profitability
I didnt see the suspension of the tenders coming but that pretty much tell you most of these companies can foresee labor cost going up and hence the high price.
The government may disagree and there fore tender suspend.
Good luck I already indicate my cash gone to CCV and CCV is where it stay for a while yet because I can predict CCV earning with certain degree of confident based on my information...
SSM Price at posting:
52.5¢ Sentiment: None Disclosure: Held
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