Too good to be true?, page-49

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saltocan

3,790 Posts.

30/06/16

00:44

Post #: 18155877
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Originally posted by vafooli ↑

I think the challenge for most investors looking as SBB is that on paper this is possibly the best value on the market. They've got a PE of around 2! So I dont think anyone investing in SBB is necessarily bad investors, or are even doing the wrong thing. The issue with this company is that they are not fulfilling their own promises. They are not paying a dividend, even though the prospectus clearly outlines one. They have done some things, such as excess spending in my personal opinion, and these havent appeared to improve the bottom line. And there seems to be little consultation among management, rather it is run as a personal business of the CEO.
This is the challenge with investing. It is like 3 blind men, everyone 'sees' things from their own perspective. If you look at the good books, low PE, cash in bank, etc, this would appear to be the best investment. But if you look from other angles, it may not seem so great.
I have no doubt that this company has great potential. Could easily bounce to 10c if there is some drastic changes in how management are running things. But thats not going to come about by changing the chairman, or other execs. Only if the CEO starts doing things right by investors. They have done NOTHING AT ALL to support investors so far. In fact, it appears to me that they are trying to sabotage the SP on purpose. The CEO sells at all time lows for example. Thats the exact opposite of what any other CEO which is trying to support the company would do.
What will change things for this stock is management looking after shareholders. Support the SP with an on market buy-back. Start paying a dividend. Improve transparency. Have an investors tour in China, giving investors a chance to have a look around at the facilities. As my father says, if you keep using the same recipe you will end up with the same outcome. Time to change the recipe.

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R
Agree...spot on..
I am hopeing the dividend is not far away.
Dyor

SBB Price at posting: 2.2¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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