SCT - Scott Tech

[Snoopy]

Interesting trade depth this morning, any thoughts from fellow holders??

If you tell us what you found 'interesting', maybe we can comment?

SNOOPY

[sb9]

If you tell us what you found 'interesting', maybe we can comment?

SNOOPY

Well, if you looked at trade depth at time of my post, you would know what I meant 'interesting'.

Large spread between bid and ask which changed during course of trade later on.

Well, my point was that there's something in the air as it often happens with tightly held stock like SCT, Was expecting some sort of (positive) announcement from company looking at today's trade pattern.

Hope it helps.

[Snoopy]

Well, if you looked at trade depth at time of my post, you would know what I meant 'interesting'.

Large spread between bid and ask which changed during course of trade later on.

Well, my point was that there's something in the air as it often happens with tightly held stock like SCT, Was expecting some sort of (positive) announcement from company looking at today's trade pattern.

Hope it helps.

I am happy to ride this one a bit higher. But as a long term holder, and with the much vaunted ramp up in meat processing going slower than anticipated, I can't help thinking that we are in slightly overvalued territory. It looks like we are pushing through four year highs in terms of share price.

Then again with that spare capital on the books SCT may be on the brink of announcing a 'game changing' acquisition? I can't help thinking that the board must be under some 'institutional imperative' pressure to spend that money. Will they buy the right thing? At least with Mark Waller, the master acquisitor for Ebos, on the board, they have a fighting chance of making a good decision.

SNOOPY

[percy]

You are right about Mark Waller.
He will not be a party to any acquisition that does not add real value.
Never has,never will.

[ace5715]

Anyone know what is going on with the Scott Tech share price? Up 13c or 5.2% on volume of 95,158 today. Up 38c since the 22nd of February and approaching highs not seen since 2013.

Over valued now? Or something happening that hasn't been announced yet.

[sb9]

Anyone know what is going on with the Scott Tech share price? Up 13c or 5.2% on volume of 95,158 today. Up 38c since the 22nd of February and approaching highs not seen since 2013.

Over valued now? Or something happening that hasn't been announced yet.

Been an interesting month or so if you look at trading pattern over that timeframe.

One or two things I'm speculating, someone has got wind of some news or JBS looking to take full control of the company.

May be Snoopy has some view or any other fellow holders.

[Snoopy]

Anyone know what is going on with the Scott Tech share price? Up 13c or 5.2% on volume of 95,158 today. Up 38c since the 22nd of February and approaching highs not seen since 2013.

Over valued now? Or something happening that hasn't been announced yet.

On a projecting today's earnings forwards method, $2.60 is looking on the high side for a fair valuation. But maybe I am missing a 'step change' going forwards? Mention was made in the AGM address about the emerging use 'collaborative robots'. No numbers were given, so I didn't think much of it. But I went to the 'Robotworx' subsidiary website and found this:

https://www.robots.com/articles/view...e-robot-growth

A few words from this article:

"The global robotic market consists of a wide range of technologies that are advancing at light speed paces and expecting huge growths. This is especially seen within the collaborative branch. The collaborative robot market is expecting an incredibly high growth rate over the next few years. It is expected to grow at a compound annual growth rate of 60.04% between 2016 and 2022, from 110 million USD in 2015 to 3.3 billion USD in 2022."

A 60% growth rate over six years is incredible. Granted this is for the 'collaborative robot market (robots working alongside humans)' not the whole robotics market. Yet I wonder if 'collaborative robot sales' are starting to match the hype?

Meanwhile, looking at the whole robot market

https://www.robots.com/blog/viewing/...botics-in-2017

"The research that IDC (International Data Corporation) brings to the robotic world holds very exciting and promising information; it reassures the well known fact that the robotics world has grown considerably over the past several years and will continue to do so. The market is showing an estimated 17% compound annual growth rate and a value that will reach around $135 billion by 2019."

In addition, Trump's plans to put more manufacturing jobs back into the USA look good for Robotworx. Not sure if this really explains the jump in SCT share price. But it all helps!

SNOOPY

[Snoopy]

On a projecting today's earnings forwards method, $2.60 is looking on the high side for a fair valuation. But maybe I am missing a 'step change' going forwards?

Have done some more internet trawling and found the website below.

https://www.scottautomation.com/

This is the old 'Machinery Automation and Robotics' website in Australia, now rebranded as 'Scott Automation and Robotics'.

The news section there lead me to the 'AUSPACK' website, where Scott is currently participating in this biennial exhibition.

http://www.auspack.com.au/exhibition/exhibitor-list/

You can find 'Scott' in the alphabetical listing.

Once again there is a strong emphasis on 'Co-operative Robots' or 'Cobots'. Emphasis is made on their usefulness to small manufacturers. So maybe 'Scott Automation and Robotics' won't be so badly affected by various large profile manufacturing shut downs, headlined by the Australian media, as I feared?

Once again Scott's are promoting heavily their meat processing abilities. This is odd because I would have thought that with JBS as a cornerstone shareholder, Scott's already had a ten year pipeline of jobs in Australia that would tie up all of their capability in this market sector.

SNOOPY

[sb9]

Thanks Snoopy for your insight.

Looking at lower NZD against USD and AUD, could be bit of tailwind for SCT and hence the stock has been rerated perhaps....

In any case, very happy holder and manufacturing is still alive and kicking in NZ at least in SCT's case, not a dead duck!!!

[percy]

Thanks Snoopy for your insight.

Looking at lower NZD against USD and AUD, could be bit of tailwind for SCT and hence the stock has been rerated perhaps....

In any case, very happy holder and manufacturing is still alive and kicking in NZ at least in SCT's case, not a dead duck!!!

Always pleased to be proved wrong.
With the share price up 84.40% in the past year, shareholders are [currently]having the last laugh.!