What is happening?, page-6

The logic at the moment for selling at this price seems to be non existent, no official market update has been released in regards to earnings. The issues presented in the last report will be resolved soon enough, but don't justify the rapid decrease in share value which we are currently seeing. The current drop in price from 40c could be related to "mum and dad" investors who are concerned the company will go broke because of its large drop in a period less than 12 months.

The next market update should see a rapid increase in SP from the current lows, this company has been highly rated by Thomson Reuters and morning star both rate the company as positive and undervalued. With the I/B/E/S Mean report showing a substantial undervaluation with a target 0f 60c+ in the short term

A company of this size, history and management team should not have a market value of $40 let alone the fact that the listed company is made of two companies (Simonds Homes and Builders Academy). This provides an option for a split of the two entities (sold or separate listing) which operate in the same industry but different market segments.

The companies BAA side is a strong performer and will continue to grow due to the governments push to up skill, the courses are generally government subsidies so present a unique opportunity to provide a service to a consumer for free yet still get paid.

The construction side will increase as well with large estates being established in outer Melbourne suburbs which is their primary market as well as the cost of property increasing in inner suburbs should see an increase in older homes being demolished and rebuilt.