macrae12 there is nothing wrong with playing the devil's...

macrae12 there is nothing wrong with playing the devil's advocate, infact a good investor needs to take all information aboard before making the decision to invest, both good and bad.

infact deep down all SSM holders will have some doubt right up until the announcement in the morning.

all we can do is weigh up all the known facts:

1. The company is currently tracking ahead of last years profit. Where they paid dividends of 3.5c interim and 4c final. Based on last years results there is no reason to expect a cut in dividend.

2. Debt is under control and is not required to be rolled over for another 18 months.

3. The company has only 8 days ago updated the market on profit expectations and expected dividend outcome.

4. I highly doubt directors would be buying just before announcing bad news to the market. Although anything is possible.

5. As you have highlighted macrae12,there is an argument the company is undervalued on a fundamental basis regardless of any dividends, given their exposure to revenue's in essential services such as water, electricity, and telecommunication.


based on the above factors I decided to buy into SSM on the day the market overeacted to the profit downgrade and firmly believe a comfirmation of the dividend tomorrow morning will lead to further shareprice appreciation on the back of a substantial dividend yield.