Scales - SCL

[tim23]

Crazy post,..on a 52 week range of 330 to 545... and when everything is down a bit....what do you want ?
Anything around 5 is great in my book !

I think we take $5 given recent market - agree!

[BeeBop]

A fairly 'sound' stock with a heck of a lot of cash sitting in the bank. The price is probably fair on its current EPS etc (taking out Polarcold's sale proceeds)....will only really drive higher on future investment (use of cash)....meanwhile dividends....

[Pricey]

Happy to top up at $4.80 with dividend to come. I'm hoping they will announce an acquisition sometime this year + future re-growth coming to fruition over the next two years, looks good!

[see weed]

Ex div tomorrow. You have until 5pm today to buy in for the 9.5c div. Feel like another pole dance coming on.

[bull....]

Ex div tomorrow. You have until 5pm today to buy in for the 9.5c div. Feel like another pole dance coming on.

if you brought at your 5 level your in a loss now even after div. around 5 dollar level has shown on charts is very strong selling level until broken

[MarineSalvage]

up to 5.07... when is level broken??

if you brought at your 5 level your in a loss now even after div. around 5 dollar level has shown on charts is very strong selling level until broken

[RTM]

up to 5.07... when is level broken??

I can't think of many reasons for the price to move up or down significantly.
The exchange rate going up is not going to be great for them.
Their markets must be in turmoil.....as is the world with COVID.....What prices might they be getting ? Can they move the volume ?
The dividend feels about right.
They will have incurred some extra costs through lockdown.
Volumes grown / harvested are only going to grow relatively slowly year on year.
Why would we expect a major move in price ?
The only thing I am scratching my head about a wee bit is the low PE....6.07 from DB. But maybe that reflects sluggish growth expectations ?
In short...I am not expecting major share price movement....just a solid and reasonably predictable stock...barring climatic disasters.
Happy to hold since early 2015

[BlackPeter]

I can't think of many reasons for the price to move up or down significantly.
The exchange rate going up is not going to be great for them.
Their markets must be in turmoil.....as is the world with COVID.....What prices might they be getting ? Can they move the volume ?
The dividend feels about right.
They will have incurred some extra costs through lockdown.
Volumes grown / harvested are only going to grow relatively slowly year on year.
Why would we expect a major move in price ?
The only thing I am scratching my head about a wee bit is the low PE....6.07 from DB. But maybe that reflects sluggish growth expectations ?
In short...I am not expecting major share price movement....just a solid and reasonably predictable stock...barring climatic disasters.
Happy to hold since early 2015

NEVER trust a PE you didn't made up yourself. The PE you quoted is based on one offs (property divestment) in FY2019.

Long term backward PE for SCL is according to my books 15;
Forward PE (based on the current FY and consensus forecasts for the next three years) is 20;

Historical earnings CAGR was 9, forecasted future earnings CAGR is negative ... (due to the one offs last year - high start), in reality it is probably more flat-lining.

Not cheap, but neither are most other stocks these days. Must be time for another puff into the bubble.

[RTM]

NEVER trust a PE you didn't made up yourself. The PE you quoted is based on one offs (property divestment) in FY2019.

Long term backward PE for SCL is according to my books 15;
Forward PE (based on the current FY and consensus forecasts for the next three years) is 20;

Historical earnings CAGR was 9, forecasted future earnings CAGR is negative ... (due to the one offs last year - high start), in reality it is probably more flat-lining.

Not cheap, but neither are most other stocks these days. Must be time for another puff into the bubble.

Thanks BP....didn't feel right. So confirms what I was thinking....no real driver for the price to go higher without more production, sales, or a significantly lower exchange rate. How boring is that ? Just the kind of stock I like !

[BeeBop]

This stock has cycled a bit in price over the years, each time to a slightly higher high. Its debt level is good, they are sitting on a pile of cash from the sale of Polarcold (hence the low PE) and yes, BP has the same PE that I have. To me the $5 is a fair price, an upside in price could well be possible if looking to what they COULD do with their term-deposit. Note, the share was valued a bit higher than this pre-COVID when the FX was slightly higher again. I had sold them around $5+ but repurchased down at 4.05 as COVID hit as I see them as a solid hold.