This is a services company. We don't want them to have assets. Would you like them to build marble statues of all of their employees and put those down as net tangibles?
I expect a normalized return on equity against shareholder equity to come in around 12% within two years, and I further expect this company's sales to TRIPLE in a long term growth run that will extend at least four years, as various levels of NBN are built out.
This may not be a 10 bagger, but from where I bought it I expect 800% return.
MAH is a value play, selling near book. But return on equity is only 11% (SSM's 12% ROE looks a whole lot better when you are buying them at 1/3rd shareholder equity), and it's obviously going to suffer when the commodity boom ends. The chart looks nice. What do you think is the catalyst for them growing?
SSM Price at posting:
53.9¢ Sentiment: Hold Disclosure: Held
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