Silver Chef SIV

[noodles]

After. It got me :-(
There are better investment opportunities elsewhere for that time period. If and when it turns itself around, and the share price does likewise, then maybe I'll get back in.

KW, As such a respected poster, I'm always keen to know what you consider the better opportunities are ATM. Please tell

[Buffett Jr]

Well I am back in - and just in time as SIV is back in form, hitting a new all time high this week of $8.97. The chart has been a good one to read (ie. easy) - I meant to buy back in at $6.50 in early Feb but fluffed around, and then bang, it gapped up and it was off to the races. Well it did me well last time, so I forgive it for its [not so] brief stint in rehab, so here's hoping for another few years of good times :-)

I sold out after their latest 6 monthly report when they changed how they measured depreciation on their assets and their head of risk resigned shortly after.

[Buffett Jr]

This one.

Prior to 1 July 2014, the Company depreciated its rental asset base using a range of depreciation rates ranging from one

to five years, based on the assessment of the practical useful life of assets financed under rental contracts. The majority

of the Company’s hospitality assets were depreciated on a five year straight line basis and GoGetta assets were

depreciated on a 4 year straight line basis. After evaluation, including historical asset and contract performance, the

Company has determined that for its long life rental assets:

- an initial depreciation life of three years is the most appropriate period to match the economic cost of the Group’s

asset base against the revenues it derives over the life of its rental contracts; and

- the application of a 35% residual value is more reflective of the value implicit in the Group’s idle asset base which is

awaiting deployment under a secondary rental contract.

After performing more detailed analysis, the Company has determined that the above modifications meet the definition of

a change in estimate under AASB 108 Accounting Policies Changes in Accounting Estimates and Errors. The change in

estimates has had the effect of reducing the depreciation expense for the six months from 1 July 2014 to 31 December

2014 by $0.9 million assuming the 1 July 2014 rental asset base was depreciated for the full six month period without

taking into account the addition of any rental assets acquired during the period

[Buffett Jr]

For example. $100 asset. Using their old 5 year straight line method $20 of depreciation per year.

New way is same $100 asset, residual value of $35 after 3 years so $65 of depreciation over three year period compared to $60 from old way.

This is an increase of 8.33% in depreciation. So if you look at the last profit increases, a lot of it is actually just due to changing how they depreciate the assets. Just added to the argument when their head of risk (who you would assume would be all tied up in this side of the business) resigned a week or so after the announcement. Made me wonder. I don't like to wonder about my investments so sold.

Perhaps the wrong thing to do taking into account that was when the price was still under $8, but who knows.

[Buffett Jr]

I think the thing driving the share price is that they said Canada was cashflow breakeven, and expected to be profitable 1H 16. There was a lot of doubt about whether they could make an offshore expansion work, or if the model would only be successful in Australia.

Do you still own this one KW?

[DarkHorse]

Just having a wee look at this consistent top performer - looking pretty cheap atm (25% below average analyst target price 4traders) with still plenty of growth potential for Go Getta and in Canada. Anyone holding - or decided against?

[NZSilver]

Thanks for bring to my attention, I haven't looked at this in a few years. Will take a look

[DarkHorse]

Cheers. For any unfamiliar with the business this recent little article provides a neat introduction: http://www.monashinvestors.com/silver-chef-march-2016/

[macduffy]

Update from SIV yesterday disappointed the market which marked the SP down 15%. A case of not meeting expectations - doesn't look too shabby to me.

http://www.asx.com.au/asxpdf/2016072...8k01429tgm.pdf

Might be worth a look today.

[Snow Leopard]

Mr Market finally understnding what they were told 5 months ago and hopefully over-reacting.

Best Wishes
Paper Tiger