Fundamentals are still the same - good US expansion and a weak USD. Div yield should put a floor on the price too. Will look to top up if it drops to the low $1.30s.
"His loyalty couldn't be bought at any price; but it could be rented remarkably cheaply."
IIRC, similar pattern happened in days leading to FY results in Aug last year. The price was hammered down all the way to $1.18 or so and boom they came out with big results followed by trading update at ASM.
Wonder if there's another surprise in store this time or market pricing in a not so great result?
I guess all will be revealed in a weeks time on Thu 18th Feb.
Considering the significantly lower currency and the fact that some 76% of sales are exported...the result seems pretty underwhelming to me.
Phrases like "tough market conditions" and later in the statement under Outlook Chairman Sir Selwyn Cushing said Skellerup’s results represented a solid performance in what remained a difficult market. are a little concerning.
9% increase in sales on much lower currency which should have boosted margins, where's the money going ?
Disc: No longer hold.
Last edited by Beagle; 18-02-2016 at 08:56 AM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Thanks for the link.
Mixed,flat,steady dividend,yet there is progress being made.
Diversified means when one sector is down other sectors are on the rise.
Still a well run business with a strong balance sheet that is "well positioned" to take advantage of any opportunities that come along.Great seeing they are finding more of those opportunities in the USA.
Glass half full Percy...must be the new brand of coffee my wife bought last week...I see the glass half empty...change coffee or get new glasses ?
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Solid performance in a difficult market. Increased their revenue by 9%, kept their earnings and their balance sheet looks very healthy indeed. Great example for the benefits of diversification.
Just imagine how their profits will soar as soon as their major markets mining and agriculture (mainly dairy, but the gumboots) will come out of the doldrums and need to catch up with all this delayed maintenance.
Their recent move into automotive can't hurt in my view either (more diversification, and an industry which will do well as long as the oil price is low ...).
Like it ... not a speculative share but in my view one of these value games.
Discl: Happy holder (goes without saying).
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"Prediction is very difficult, especially about the future" (Niels Bohr)
Pretty average result, down on HY15 which was also an average result (EBIT 10% lower than HY14). To be expected though given the state of their main markets. Also agree with BP, that I am impressed by their development of new markets/diversification.
I will look to purchase if price drops significantly on this news.
Originally Posted by xafalcon
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