Silver Chef SIV

[Snow Leopard]

For reasons which allude me SIV finished up 4.4% on the day.

It had already made up all of the the drop from the late July announcement so sitting on a 23% gain in less than 3 months.


Best Wishes
Paper Tiger

[Snow Leopard]

For reasons that also allude me, it has given the 4.4% back and is where it was 3 days ago.

The joys of the ASX .

Best Wishes
Paper Tiger

[macduffy]

An AFR headline reports a major fraud at SIV. Article is behind the usual paywall.

Shareprice is down 11.5% today.

[Joshuatree]

Just seen this ; missed a golden opp at or below $9(currently $9.73). $3 million fraud.

[Snow Leopard]

Announcement came out yesterday end of day.

FY NPAT expected to be down maybe 10 percent this year. But hopefully a one-off and really only worth 2-3% off a current valuation.

Those I own before now worth less . But had some fun today

Best Wishes
Paper Tiger

[macduffy]

Thanks, Tiger. Yet again I forget to consult the obvious source of news - official announcements!



Yes, Jt, a fleeting opportunity missed there. SIV is one of those stocks that I wish I'd bought a few years ago.

[Snow Leopard]

Half year is out and I sense a possible bargain in the offing.

As a result of the before mentioned fraud event then the headline is:

an EPS of12.85cps as opposed to last years 32.54cps and
a reduced interim dividend of 12.9cps down from 17.0cps.

Full year is expected to be in the 58.9 to 64.5cps range (down from 68.9cps).

Looking past the failings of this year and you are talking of a no growth scenario going forward of 78.6cps+ next year.
Add even modest growth and what is you valuation compared to the share price?

One of the things that baffles me with this share is that repeatedly the results come out as already flagged by the company and the market is really surprised!

Anyway we will see how low the market is willing to go and maybe go shopping.

Best Wishes
Paper Tiger

[DarkHorse]

Hi PT
I was very interested a while ago - on the surface they have a great track record and look cheap.
However, if you dig deeper their earnings are not so solid - see for example http://findthemoat.com/2016/12/01/silver-chef/

[Snow Leopard]

Hi PT
I was very interested a while ago - on the surface they have a great track record and look cheap.
However, if you dig deeper their earnings are not so solid - see for example http://findthemoat.com/2016/12/01/silver-chef/

Well I hope you treat these sort of articles with as much caution as you do my posts

...Looking past the failings of this year and you are talking of a no growth scenario going forward of 78.6cps+ next year...

That should have been 68.6cps. A slip of the finger, sorry, I should have noticed .

But you will note that I suggested a no growth start, even if I did get the number wrong.
And then hinted that even a modest growth based valuation would offer upside.

So anyway, I believe under the above criteria it has a value of $8.10 now and $8.78 in a year.


I did stick a sub $7 bid in today, which obviously never got hit .

Best Wishes
Paper Tiger

[Snow Leopard]

Well there is never a dull moment with this one is there?

UP 8.8% to $8.43 at close today on good volume:

That puts be back in profit overall and with a 20+% (unrealised) gain on my 3-Mar buy.

I will enjoy the moment.

Best Wishes
Paper Tiger