Skellerup (SKL) Fundamentals

[Balance]

I’m about the same, a month or so earlier at about $1.25. In addition to above nice new factory to improve the efficiency of what they are making. I think this has earned a place in my portfolio, albeit at a low %, 2.44. Will consider adding if performance remains solid over next few years.

11c dividend on your $1.25 entry price - wish we all had more of those!

[Beagle]

11c dividend on your $1.25 entry price - wish we all had more of those!

Congrats to those that showed forbearance through the years of disappointments and multiple statements of optimism only one or two of which turned out to be correct.
Great that some want to blow their trumpet and fair enough, with that sort of perseverance.
More to the point though for current discussion is whether this company is a good buy now ? I don't think the company deserves any higher PE and possibly doesn't deserve the current one.
That won't stop brokers climbing on board and recommending it because, surprise, surprise, they love to change their opinion and generate brokerage !
My favorite saying springs to mind "Every dog has its day"

[Jantar]

….
More to the point though for current discussion is whether this company is a good buy now ? I don't think the company deserves any higher PE and possibly doesn't deserve the current one.....

This comment made me look closer and test my own assumptions for a fair price. I am looking for good dividends and a reasonable growth, with a minimum return after tax of 5%. My average buy price for SKL after allowing for dividends already received is only $1.36.

My own take on that puts a value on SKL of around $2.10 so at the current price of $2.18 is a hold rather than a buy. If it climbs to $2.25 then I will probably take some profit.

[Patient Panda]

I can only refer you to my experience..

Purchased late October 2015. At about $1.39. Now about $2.10.. Producing a very reasonable dividend..

With in my opinion.... A niche market that they understand and are very capable of taking over..

My congratulations a very nice profit. I’m very glad I reallocated my SKL funds as they have certainly outperformed what I would have got had I left them alone.

Over the past few years the majority of shareprice gains have been made up of PE expansion rather than a business going gangbusters. Just something to keep in mind for future risk weighted returns.

[Beagle]

My congratulations a very nice profit. I’m very glad I reallocated my SKL funds as they have certainly outperformed what I would have got had I left them alone.

Over the past few years the majority of shareprice gains have been made up of PE expansion rather than a business going gangbusters. Just something to keep in mind for future risk weighted returns.

Very clever Panda. That's bang on the money. They forecasted $27m profit several years ago and then....oh dear, oh dear,...was it 3 or was it 4 poorly explained downgrades in one year ?

[traineeinvestor]

Another happy shareholder who purchased at the right time and has enjoyed decent dividends and modest share price appreciation over the last few years.

While noting the company's chequered track record of missed forecasts and sharing the reservations others have expressed about the valuation looking a little high, one of the things I continue to like about SKL is their capital management. They avoided both a capital raising and elevated debt levels when they were building their new facilities and they have demonstrated this again, delivering lower debt levels rather than higher inventory/working capital on the increase in turnover.

Even so, at current prices, I'm a holder rather than a buyer.

[Patient Panda]

Very clever Panda. That's bang on the money. They forecasted $27m profit several years ago and then....oh dear, oh dear,...was it 3 or was it 4 poorly explained downgrades in one year ?

Yes it was a good learning exercise!!

I have never owned a company besides SKL where guidence has been updated to the downside so many times.

They have a lot of exposure to highly cyclical industries and even if most segments are doing well the one bad apple can ruin the barrel. Not often you see two or three different Cyclical industries in sync and with favourable tailwinds.

if one wants an inconsistent performer with a much better divvy, cheaper fundamentals in a similar industry why not MPG? At 83cps looks like a steal compared to SKL. If they recover even a little bit they’ll enjoy a PE rerate similar to what SKL has gone through.

[Balance]

Very clever Panda. That's bang on the money. They forecasted $27m profit several years ago and then....oh dear, oh dear,...was it 3 or was it 4 poorly explained downgrades in one year ?

And that's why some were able to buy the stock at $1.25 - gee, I think that is how the market works?

[Beagle]

And that's why some were able to buy the stock at $1.25 - gee, I think that is how the market works?

I try and avoid buying dogs unless they have fur ...but yes some punts pay off and even a flea ridden mangy dog barks now and again.

[Snow Leopard]

Lunch was actually Ayam Goreng dan Jus Mangga.

Selling out of a very definite uptrend is not something I would suggest anybody does lightly....

Wish I had kept them now

Still no good crying over spilt milk.