Ah!!! I see the RichO Man has joined our thread. RichO I got on...

Ah!!! I see the RichO Man has joined our thread. RichO I got on MAH and jumped off too early. But made a couple of nice profitable little trades this week, so I no complain. See you took my advice and jumped on board. You're probably wondering why you did now. All I can say is, have you been to India???

Well RichO Man get this post India!!!!

Over the past few weeks I have observed 2 things with regard SSM. Firstly sp manipulation and secondly people cashing out of SSM at a profit and then posting on HC questioning the debt or next div or stating get out cos sp will crash after div.

As the title states, lets get the facts straight.
1 - SSM will pay 3.5c fully franked Interim div 09 Apr, 09
2 - Last yr SSM paid two divs:
Final 4.00 100 22 Sep, 08 17 Oct, 08
Interim 3.50 100 19 Mar, 08 10 Apr, 08
and recorded an 18mil profit.
3 - SSM has forecast a profit of 38mil (understand its a forecast, but SSM are in a better position to predict their profit than all the posters on this tread). So to split hairs as some may try to do, the fact is that SSM management has made the forecast, 38mil profit is not a realised profit at this point. Also there has been no evidence to the contrary regarding the profit forecast, that's a fact.
4 - Another important fact is that SSM has not categorically stated that there will not be a div payment in Oct this year. So the second div this yr may just as well be paid as not.
5 - SSM management have stated that The Company continues to operate within its banking covenants and has sufficient headroom within its debt facilities to fund growth in the business. Debt under control!
6 - There are other companies listed on the ASX with sp's of 20c, 30c or 40c who have recently announced or paid dividends. I have deliberately not named these companies as I know some will say you can't compare one company to another. Yes and no. However you can compare ROI. ACME with a sp of 30c paying div of 1.5c = 5% ROI and XYZ co with a sp of 30c paying div of 3.5c = 11.66% ROI. Incase you aren't aware ROI is return on investment, a factor I thought must astute investors took into account when determining the value of any asset.

By the way just a hunch, but I can see the sp rising after dividend and my reasoning is this. SSM sp has been kept down so shares can be accumulated to get dividends. After x div the downward pressure will disappear and the accumulators may not necessarly sell out. Again there are other examples of such occurrences with other ASX listed co's.

My sentiment is buy up to 45c and hold after that. RichO that should make you feel better.