re: Ann: Service Stream - Notice of Shortfall...
Might be stupid in your opinion but if you look at my sentiment for stocks I have posted on with SELL you should see that the share price has gone south not north.
Stocks I post on KFE, FXR, MAH and BML. I have either SELL or BUY sentiments.
You can be the judge on whether my opinion is stupid based on the share prices over the last 6 months.
KFE 5.7 cents FXR 1.5 cents MAH 11 cents (note NTA is 32 cents) BML 0.9 cents
In my opinion MAH will re-rate when the Institutions decide to pull the trigger. For now they have lost trust in MAH. MAH currently in re-building phase to regain confidence and trust of market. Anyhow, back to SSM.
What is SSM's NTA? I will tell you.
It is 13 cents with half of that accounted for in Accrued revenue and it trades at 20 cents. All this from a company with an EBITDA forecast for FY14 of $20 million. Based on first 6 months Accounts NPAT will come in at around $7-$8 million.
So this is a great company or a great value play? Annualised turnover of approximately $430 million, Net profit of around $8 million. A massive 2% NPAT margin!!!!!!!!!!! What value.
This is what SSM had to say in it's first half presentation
"Board confirms guidance of approximately $20.0m EBITDA (subject to the timing of customer demand in H2), having delivered $7.5m in the first half."
You gotta love the disclaimer!
My sentiment is SELL and never invest in a company that has such low NPAT margins. This company in my opinion is only good for executives, board members and staff. Paid very very well for delivering jack for shareholders.
SSM Price at posting:
20.0¢ Sentiment: Sell Disclosure: Not Held
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