In 2009, SGN earned $33 million underlying profit before 'one offs', with EPS killed by capital raising. In 2008, SGN earned $39 million underlying net profit before 'one off' costs and EPS of 20.2 cents. In 2007, SGN earned $42.6 Million and EPS 21.7 cents......in 2006 SGN earned $40.8 million and EPS 20.6 cents
Before capital raising 201 million shares were on issue.....2009 annual report notes 364 million shares on issue
This year they earned 38.6 million and EPS 10.8 cents. Those are the simple facts.
2009 annual report notes a company that bought back shares at a relatively high price and issued an incredible amount of stock at a low price in the same year!! I've never actually seen that happen. The negligence is astounding.
Is it reasonable to think that this business earns half the earnings it used to......because it almost doubled its issued capital!!! If these ad agencies, which were bought over a long time, not in 2009 specifically were bought at 'bottom' of cycle and were good buys..... where is the EPS
This story is even more astounding when SGN's core advertising business has always been the superior business....higher margins, better quality....
Anyway, as I said, it was a solid result but this companies' pedigree demands more......I subscribed to 48 cent shares like many others.....I have made much money thankfully....the difference is whether these are discussion forums or cheerleading sessions
SGN Price at posting:
$1.25 Sentiment: None Disclosure: Held
