It got a plug from Tim Kelley of the Montgomery Fund on Tuesday night's airing of Your Money Your Call.
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It got a plug from Tim Kelley of the Montgomery Fund on Tuesday night's airing of Your Money Your Call.
Thanks KW, much appreciated
KW, my initial instincts are to avoid after the initial downgrade because they are often followed by further downgrades. I think it was in either the AGM or FY13 result that SIV first alluded to slowing growth and obviously things have deteriorated from there.
My preference at the moment would be for FXL where I have been waiting for a re-entry. It is also under its 200DMA but has re-affirmed its forecast for FY14, made a FY15 EPS accretive acquisition and at $4.20 is trading at 15x cash FY14 EPS. At this stage I would prefer the safety of FXL at 15x after reaffirming its forecast rather than SIV at 13x after downgraded earnings
Half yearly results released today.
1H13 1H14 Change Revenue $53.6m $67.4m +25.9% Rental assets (at cost)* $257.4m $274.5m +6.6% NPAT $5.9m $6.5m +9.5% Underlying NPAT $5.9m $5.8m -1.4% Net operating cash flows $36.7m $40.7m +10.9% Basic EPS 21.9cps 22.4cps + 2.3% Dividend (fully franked) 14.0cps 14.0cps unchanged
I almost bought on the result but it's rare for growth to quickly return back to normal after a disruption. Might wait for the next earnings update...
You are both looking ahead only to next year. I prefer to look at companies like Silver Chef and see where they are likely to be in 5+ years time.
The expansion into non hospitality (Go Getta) and overseas (Canada and New Zealand) is having a few speed wobbles at present but the long term future of the company is very promosing with these future growth and diversification opportunities. The changes in management recently I think are good for the company providing they find the right person to fill the CEO shoes.
I see you sold recently KW, was this before or after the drop from $8 to $5.
How long you been investing for? My strategy has worked very nicely for 15 years thanks. I would be happy to compare returns with you over that period.
Buffett buys whole companies and can wait out a slow periods and can influence how the company is run. My guess is you are a portfolio investor like the rest of us. You own a very small stake, have no control and can't access the companies cash flow other than via dividends. Reading all the Buffett books in the world won't change that