The relentless downwards spiral in WH SOUL spinoff SP TELEMEDIA(SOT) must have shareholders wanting to slit their wrists. The company has been queried over the slide for the second time in less than three months, this time over a fall from $1.16 on January 23 to as low as 91.5c on Thursday. Directors could not explain the fall. SP rose 3c to 99c on Friday. The shares were $2.54 this time last year. The company reported a big rise in profit last year and was confident about the future. EPS for the year was 5.6c and dividend 2.2c. Maybe the shares were simply overpriced. Even at latest discounted prices SP is on a p/e of almost 18 times.
Comsec has the P/E at 16.65 Forecasted P/E's are: 30/7/2006 14.1 and 30/7/2007 10.9
Regards Quik.
SOT Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
