Thank you for sharing your analysis, dshah73. I would like to...

Thank you for sharing your analysis, dshah73. I would like to add the following though:

In their market update of 21st May 2020:

• Increased costs to deliver operations;
• Some temporary pauses in work programs;
• Delayed commencement of some minor projects;
• EBITDA from operations for FY20 guided to be around $108M. This is 7% lower than what was guided in February (2nd half EBITDA approximately equal to the first half EBITDA). This means that the profitability of the second half was down around 14% from what was expected in February. This is still quite a small reduction in the current environment and confirms how safe their business model is.

As an investor, I still think SSM is good value, and IMO is likely to restore profitability and growth to earlier levels once the market settles down again. IMO, this is why the share price is where it is. The market is waiting to see if SSM can successfully replace the NBN work with other utility work and for signs that the minor issues raised from the coronavirus are behind it. If/when this does happen, I think the upside is at least 40%, or perhaps 60% taking into account the lower interest rates.

I agree with everything else that you say, but your values are a bit in the future yet and subject to actual performance over the next 6-12 months.