Fundamentals are not that great - I have been following SIP & looking for an entry. However the recent cap raising is dilutive by 10% in EPS terms. Despite SIP paying off $227 million in debt there still remains $300 million more to be paid off according to their half yearly indicating total debt stands at $516 million. Even though it is due in 2011 we are talking about $12 million in liabilities in the 2011 financial year, there is no issue, SIP will meet its covenants. SIP's NPAT will need to grow 10%+ over the next 24 months to offset the dilution. Great products and marketing could get them over the line. Interesting times, will wait to see how it performs after the ex dividend date.
SIP Price at posting:
$1.01 Sentiment: None Disclosure: Not Held
