15 Cent SWM share price = 3 times current earnings - Momentum is beginning!, page-167

@Giz the below isn’t directed at you just so were clear. Rather I’m speaking to ALL SWM shareholders.

Honestly why care about intraday share price moves ? Is it the job of an investment to make its investors feel like winners 24/7 or is it’s job to actually focus on delivering revenue/profits?

Here’s an uncomfortable fact that no one around here wants to hear.

The reason SWM trades at such cheap levels IS BECAUSE INVESTORS ARE ACTING EMOTIONALLY IRRATIONAL and have thrown the baby out with the bathwater.

Right now investors are acting like Veruca Salt yelling at Kerry Stokes “I WANT A DIVIDEND NOW!!’’

Well here’s what you all need to do– harden up! put on your big boy pants and understand that we are now through the worse Total TV ad market recession in Australia’s history! The future is very different from the immediate past and as a cyclical business you stand to gain massively from buying while current depressed prices do not reflect SWMs positive intrinsic fundamentals.

The reason SWM delivered Disallowed returns in 2020/2021 is because investors made the same mistake they are making today and allowed their pessimistic sentiment to cloud their vision of the improving business fundamentals.

Kerry Stokes has his faults (I have been the first to criticise him over the handling of the Ben Roberts-Smith saga) but let’s be clear the current depressed share price isn’t his doing – it’s collectively yours!

So take off your ‘group think’ hat and instead use your brain to study the underlying SWM business- what you will find is a business that is profitable, growing and transforming into a digitally led business while trading at the fire sale price of less than 2x mid cycle earnings ($155m NPAT).

Your job as an investor is to develop the emotional maturity to see through this current irrational pessimism and to profit handsomely by buying SWM whilst it trades at such ridiculously cheap prices.