IMO SSM is currently a screaming buy. The market has completely over-reacted to their difficult half year and pushed the SP to an oversold level. Given the revised numbers, SSM would still make in excess of $32m PAT annually, and at the current market cap of 550m, the PAT alone over 15-16 year period can buy the company over. PE is at a very reasonable 11. And with their established line of business partners, SSM should be able to pull through this easily. Remember, the aggressive selling in the stock was perpetrated by short sellers. I am not advocating that the SP would turn around immediately, but an entry at this level would afford an investor high margin of safety.
SSM Price at posting:
$1.22 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)