Alarmed by the contnual fall in SP i rang SSM HQ on Monday afternoon. The receptionist was gormless but i got a good hearing from company secretary Jessica Lyons. My particular concern/query was: 'Is SSM in any way liable for the confusion/mistakes eminating from smart-metres?' I esp referred to a recent episode of ACA where a customer of Origin energy has all sorts of drama with his smart meter and Origin itself. I was assured that SSM only install the metres and are not liable for disputes re electricity bill. Nevertheless she was keen to watch the episode online, and hadn't been aware of it.
Essentially, situation at company is no different from that described in annual report of 25/08. SSM are getting 4G wk from Vodacom and hope to get plenty more from Telstra with whom they have wked for many years. SSM are hopeful their NBN bids re NT and SA will get the nod. These should be ann within next 2 months. With large increase in operational cashflow and divs proposed to return in Feb '12 i am sticking with my stake in company. They are right in the best macro for years with some 14Billion dollars of NBN wk still to be made available. Had to conceiv SSM won't get a decent chunk. My FY12 forecast is rev 674m, ROE 11%, NPAT gain 22%. Hence FY12 PE (at 40c) is 5.7! I'm expecting 3cffr div this financial yr. Please still dyor.
SSM Price at posting:
37.7¢ Sentiment: Buy Disclosure: Held
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