My take is it could be a combination of the following: 1. Being a contractor. Yes capital light but higher risk. Contractors typically don’t carry market premium valuations 2. Concern or uncertainty on future growth. Market data shows low single digit EPS growth out for the next 3 years and the completion of the NBN seems to dominate a lot of the discussion re SSM near term 3. Money is flowing into hotter areas like BNPL and SSM is somewhat more defensive 4. There was a report a few days ago that had SSM as mildly exposed, amongst others, should VIC enter stage 4 restrictions. Note VIC just went back to stage 3
Personally I’m comfortable with all of those and I believe that enabled me to get in at a good price but who knows, the sharemarket is a dynamic beast
SSM Price at posting:
$1.89 Sentiment: None Disclosure: Held
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