Spotless Chart, page-108

First 108 Last

Share
Profile

Follow
CaptainBarnacles

11,292 Posts.

733

21/10/16

11:20

Post #: 20024567
Share

Originally posted by bug1 ↑

They do look like they are trying to manage expectations, both the Chairman and CEO state they expect 2017 to be a "transition year", those words wernt used in the annual report.

However, there is no indication of a change in strategy, or reduced earnings, which we should expect if the fundamentals had changed.

The negatives in the 2017 outlook include;
- Contract losses
- Margin pressure in some sectors
- Increased depreciation (mentioned when laundries where considering to be sold off iirc)

Doing some digging, on page 127 of the annual report, there is this;
"The FY17 EBITDA forecast is lower than historical levels, reflecting the loss of a number of contracts and tightening of some margins, partially offset by moderate projected new business consistent with the Group’s pipeline of opportunities and heightened focus on business development. Growth levels are predicted to return to more normal levels in FY18 and beyond."

So i guess those who went through it in detail wouldnt be surprised by the wording used at the AGM, but mere mortals might not have read that paragraph buried towards the end of the report (or it might not have sunk in).

I do feel a bit more cautious, but im not selling any at these prices.

Expand

Bug - I hadn't picked that up, and not in the prelim report either - exactly the same statement - TU from me - but I notice on Fnarena that the market had a higher eps pegged for 2017 than 2016, which is interesting.

Anyway - closed my short, but may re-enter - not sure yet.

SPO Price at posting: $1.02 Sentiment: None Disclosure: Not Held
1 Upvote

0 Great analysis

Reply

Top Stories

FG1

Flynn Gold reaches milestone exploration target for Golden Ridge

UBI

Universal Biosensors flat despite fresh deal with US medical product distributor

IMU

Imugene kicks off Australian trial for blood cancer treatment

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Trump is President Again: What Does This Mean for Crypto?

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

Week 45 Wrap: Combat sports usher in Trump 2.0 – or is it male insecurity?; RBA boring; Propane suggests China alive

HotCopper Highlights: Your most watched and most discussed stocks this week

MMI

Metro Mining inks bauxite offtake contracts into 2026 with Chinese m

Trump Victory Sends Bitcoin Surging Above $75K – Is $100K Next?