PE of 11, almost debt free, dividend payouts moving higher, cost reductions and modest growth, can't be beat. There is perhaps some concern about exposure to mining and China slow down, but I understand that most of SKE's exposure is volume related, not price related. That is SKE labour is used to help move the tons of material around (through mining and maintenance). The price of commodities is decreasing, but the driver of SKE's business volume (tonnage) is continuing to increase and looks like increasing for a number of years.
I would also note that much of the volume in shares traded in SKE in the last week has been someone or some people buying and selling to them selves. I'm not clever enough to figure out whether they are doing that to clear a position without destroying the price or whether to to establish a position at a lower price. If I was to guess I would say someone is taking this opportunity to increase their position and is shacking out nervous nellies. I don't have access on my trading system to see which brokers have been nett sellers or nett buyers.
Dis: I have been a buyer in the past week.
SKE Price at posting:
$2.95 Sentiment: Buy Disclosure: Held
