Ann: Market Update, page-5

First 5 Last

Share
Profile

Follow
Ramallah

615 Posts.

31

09/12/14

10:25

Post #: 14431110
Share

Originally posted by grandcaruso ↑

I think they'll hit it again. They moved this down yesterday with parcels of 30,000 & 28,000 just sitting a cent or two above the bid and because of the lack of buyers, people were forced to sell into an evaporating list of buyers. This kind of stock favours the shorters and ASX stupid 4 same question speeding ticket never provides any insight or reason for people not to sell or short. Fundamentally I'm not against shorting, all shorters do is ask questions. the problem is, management and the ASX never get out timely answers and guess who knows this.

Just my thoughts, 1st QTR up 10% pcp however I doubt much of that is organic growth probably acquisitional growth. OMSA is a minor acquisition and is apparently EPS accretive. The other acquisitions I believe have been in the engineering and marine services area which is now probably not the best place to be in. Did the pay too much ? Gearing ( via acquisitions ) up to 26% which isn't too high but a lot higher than beforehand. No guidance given but they only update market recently. Revenue and profit have stagnated over the past few years. Revenue from Engineering and Marine ( E & M ) is roughly 1/3 of total income. E & M profit margin is above 9% with Workforce and Tec professionals contributing 4% and 4.4% margins. So the area of the business which has the most questions about it is contributed a 1/3 of the income and a massive 50% of the profit. This is the way I read it. please correct me if I'm wrong ? Have I missed anything ?

So hypothetically if I reduce the margin on E & M down from 9 to 4.5% then I wipe out halve of their profit and dividend payment falls accordingly. If this question doesn't get answered soon then the share price is fair and perhaps a little bit vulnerable.

Expand

What a staggering sell off yesterday, well done to those who jumped in and purchased some on the lows, who was selling it down???

SKE Price at posting: $1.42 Sentiment: None Disclosure: Unspecified
Upvote

0 Great analysis

Reply

Top Stories

Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

CKA

Cokal upgrades infrastructure for BBM ramp-up in Indonesia

NTI

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

COD

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

WCN

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

BCI

BCI reaches close of funding facility for salt-first part of Mardie project

SLS

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

RCE

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

BUX

Buxton projects new graphite province discovery at WA Narryer play

ACW

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

There are more pages in this discussion • 21 more messages in this thread...

First 5 Last

Add SKE (ASX) to my watchlist

Ann: Market Update, page-5

Top Stories

Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

Cokal upgrades infrastructure for BBM ramp-up in Indonesia

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

BCI reaches close of funding facility for salt-first part of Mardie project

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

Buxton projects new graphite province discovery at WA Narryer play

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

Featured News