I thought I'd do some more research about the company and here...

I thought I'd do some more research about the company and here are the facts:

-On 03/11/2008, SSM announced a long term contract with APA worth $23m
-On 17/10/2008, SSM announced a two-year contract with Sydney Water
-On 03/07/2008, SSM announced a five-year contract with SA Water
-On 22/11/2007, SSM announced a two-year contract with Telstra.

All of these announcements highlight that their contracts are generally not for short periods of time and most will extend into 2010. There are more announcements that I have not included here.

In the short term at least, this company will be making a profit as it has outlined in its announcement to the market on 19/02/2009.

IMO, the market has hammered this stock for the following reasons:
-surprise announcement on 19/02/2009 that profit will be lower
-Not making that disclosure on 28/01/2009 after the ASX Price Query (i.e. highlighting that there was something the company knew about which was not being disclosed, this can lead to investor distrust in the company)
-uncertainty over the long-term future of the company and how it will be affected because big infrustructure projects WILL be pushed back or cancelled by companies due to the economic slowdown
-increase their staff over the last year twicefold, which will obviously increase expenses
-McCourt Dando came into the business and began with a loss

However, as many others here have pointed out, this stock appears to have been oversold. Here are the reasons:
-The company is making a PROFIT, not a loss
-The updated profit guidance is still very reasonable
-The company anticipates to continue to pay dividends at the same level as prior period (i.e. 3.5c which is EXCEPTIONAL if they pay it out. Even if they dont, the stock is still undervalued IMO).
-SSM's main senior debt is not due for renewal until October 2010, which is still a fair time away, and hopefully the financial crisis will be almost done by then.
-"McCourt Dando is on track to return to profitability during the current half"
-"The Company expects to record a strong operating
cashflow performance for the second half"
-"We also believe that the next financial year will see the
Company benefitting from a number of the deferred new business projects to add to that core revenue" - this highlights that projects have been pushed back this period which is a reason for the profit updated.
-As the company has stated, most of their profit guidance is based on contracted work that they ALREADY have.

Overall, I am hopeful to see this stock back at atleast 50c within the next 3 months.

Good luck to all those that hold.