Huge milestone with the launch of Project Phoenix this Sunday....

Huge milestone with the launch of Project Phoenix this Sunday. Over $60m and 2 and a half years of hard work have been invested into Project Phoenix and now we can benefit from the huge amounts of cash this investment will help bring in.

Management guidance is for Project Phoenix to provide a return on investment greater than 44% per annum or $27 million extra cash for SWM EACH AND EVERY YEAR! A massive sum of money when you consider that SWM is still trading at less than 2 times mid cycle earnings!

This is the payoff for shareholder patience and its another reason why SWM will issue upgraded earnings guidance for this current half at the Macquarie Conference in early May.

When SWM management says ''Based on current expectations and market conditions, H2 earnings expected to see modest growth on H2 FY24'
here's an obvious hint for those of you that are playing along at home
'the current expectations and market conditions'constitute SWMs bookings tracking up low single digits in Q3 ...WITHOUT the following trading benefits having occurred

+ PROJECT PHOENIX (EXPECTED TO BRING IN AN EXTRA $6M OF REVENUE IN Q4 FY25)

+ FEDERAL ELECTION AD SPEND (EXPECTED TO BRING IN AN EXTRA $8M OF AD SPEND ONCE THE ELECTION DATE IS CALLED)

+ AFL DIGITAL RIGHTS (EXPECTED TO BRING IN AN EXTRA $8M OF AD SPEND ONCE THE NEW AFL SEASON STARTS IN EARLY MARCH)

+ INCREASED AD MARKET SPEND FROM THE FIRST INTEREST RATE CUT IN FEBRUARY 2025. (BENEFIT YET TO BE QUANTIFIED BUT ESTIMATED AT $5M EXTRA REVENUE ACROSS 2H)

So by my very conservative estimates we are already on track to exceed SWM management guidance by $27 million in 2H FY25.

Honestly its never been easier to front run this earnings upgrade as anyone with half a brain can see that SWM management has intentionally issued a trading update which presents an EXTREMELY LOW BAR OF 'MODEST GROWTH' TO LEAP OVER!

The SWM share price will start running higher during the lead up to the Macquarie Conference which is held in early May as the smart money positions itself for this inevitable SWM earnings upgrade.