What a staggering sell off yesterday, well done to those who...

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

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

PFE

Pantera begins drilling of maiden test well at Smackover

RNX

Renegade hits best pXRF copper reads yet at Mongoose, part of QLD Cloncurry project

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

C29

C29 Metals wins Kazakhstani uranium drill run green tick, Kazatomprom talks mature

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

First 5 Last

Add SKE (ASX) to my watchlist

What a staggering sell off yesterday, well done to those who...

Top Stories

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

Pantera begins drilling of maiden test well at Smackover

Renegade hits best pXRF copper reads yet at Mongoose, part of QLD Cloncurry project

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

C29 Metals wins Kazakhstani uranium drill run green tick, Kazatomprom talks mature

Featured News