Scales - SCL

[Beagle]

Our new Chinese friends are certainly a wild card. While I concur with analysts that think $3.50-$3.60 is a fair target price in 12 months we cannot rule out the chance of a takeover and I feel they'd have to make an offer of $4+ to get traction.

[tim23]

Agree Roger under $4 won't cut it

[Ghost Monkey]

Thanks for your posts on this one mate. You are right the analysts seem to like the result http://www.4-traders.com/SCALES-CORP...561/consensus/ and I am sure there's a good future ahead. Probably got a bit ahead of itself lately at $3.50 but on any meaningful correction like what's going on today or a bit more I start to get interested. Disc: Trimmed down a bit at $3.30, interested in reacquiring at the right price.

I think a target price of around $3.50-3.60 in 12 months is about right.

You told me a few weeks ago there was nothing but 'strong growth'. So what changed?

[Beagle]

Strong growth tempered somewhat by rising currency. Its also a question of how the currency affects things going forward. The recent bounce well above 70 cents isn't especially helpful for exporters.
Good strongly growing company with excellent prospects though. Chinese will take this over eventually, you mark my words. I gave this one a big write-up at $2.90 ex divvy only just over a month ago. Anyone who took notice in a timely way is still a happy punter

[janner]

You told me a few weeks ago there was nothing but 'strong growth'. So what changed?

Learn to do your own research.. Do not rely on advice from this site.

As is so often told by Rodger and so many others.. DYOR :-))))))))

[janner]

Look. Listen. Learn.

This is one of the best sites you will come across.

[Ghost Monkey]

You misunderstand my intention with above post. That's ok. Lets just get back to the apples.

[Ace]

Learn to do your own research.. Do not rely on advice from this site.

As is so often told by Rodger and so many others.. DYOR :-))))))))

I think what Ghost Money was alluding to was the inconsistency with what Roger stated and done via action, as much as I admire forums members here; as investors inconsistencies bring up red flags - for example with Roger selling out at 3.30 but stating strong growth is similar to a Director saying the company is healthy and great with "strong growth prospects", and then selling out his holdings - because essentially as shareholders we are somewhat, all be it, small owners of the business. Not saying what Roger done is wrong, he can do and say whatever he wishes and there's good reason for what he does, it was just inconsistent with what he said - and as investors that peaks our curiosities. Roger does not have to disclose or tell us anything and I think it's very admirable that he can tell us what he has done with his portfolio and holdings.

That being said, I also noticed we look to the market to validate if we are right or wrong. As value investors, most of the time the market will disagree with us; and the reason for that is because we look for market inefficiencies in pricing to make money so being wrong is something we should get used to - until we make a profit that is. Unless you are a trader, what the market does should generally be irrelevant. If the market was always right; we wouldn't be making money would we. We've seen it time and time again, may be exaggerated but for example, I've seen ATM jump to 2.6 from 1.7 and drop back down cliffs in the same day. The way some posters change their opinions due to market sentiment worries me, not just in the Scales thread - just overall; so yes you're right Janner for pointing out that you should do your own research. You wouldn't let anyone tell you that your v12 engine is actually a 4cyl if you researched it and knew what you were talking about.

[Jantar]

I think what Ghost Money was alluding to was the inconsistency with what Roger stated and done via action, as much as I admire forums members here; as investors inconsistencies bring up red flags - for example with Roger selling out at 3.30 but stating strong growth is similar to a Director saying the company is healthy and great with "strong growth prospects", and then selling out his holdings - because essentially as shareholders we are somewhat, all be it, small owners of the business. ...........

I have no problems with such inconsistencies. Each person manages their own portfolio in a particular manner and for a particular reason, and hence may act contrary to what the signals say.

I have a spreadsheet that monitors the current market prices, my average purchase price for each investment, and a target price to obtain a minimum return on investment after tax of at least 5%. Yesterday that spreadsheet advised me to reduce my holding in Scales, which I did at $3.25. As a result the average purchase price for my remaining shares has dropped so low, that Scales becomes a Hold at almost any price to meet my required ROI.

Of major interest as far as I am concerned, that of the 13 companies I currently hold it is giving me strong Buy signals for only three of them: AIR, GNE and HLG.

[winner69]

Even Scales full year result commentaries tempered the previous 'strong growth' narrative some what

That changed my view as well -- less 'growth' than previously hyped 'strong growth' - and market seems to have done the same